KRG 2020 Last English

Ministry of Planning
Kurdistan Regional Government

Kurdistan Region of Iraq 2020
A Vision for the Future
Kurdistan Region of Iraq 2020: A Vision for the Future ii
Kurdistan Region of Iraq 2020: A Vision for the Future iii
The Kurdistan Region Iraq has achieved dramatic development in the past decade. Although
challenged by damage to our society and infrastructure from years of war, genocide, forced
displacement, and the destruction of more than 4,000 villages at the hand of the previous Iraqi
regime, we have begun a sustainable development process.
With the appointment of the Seventh Cabinet this spring, and with opportunities for improvement
still available to our Region, the Ministry of Planning of the Kurdistan Regional Government
(KRG) has developed a Regional Strategic Development Vision for 2020.
We have produced this Vision for three reasons.
First, we wanted the population to know how we envision the Region developing and how the
KRG is working to improve the peoples well-being.
Second, we wanted to unify present thinking into an overall plan for the new cabinet in order that
all parts of government will work together for a common goal.
Third, we wanted to provide a framework under which the individual ministries could develop
their detailed policies and goals through 2017, and so included five-year policy priorities.
In the Kurdistan Region of 2020, our private sector will take the lead in providing jobs and
economic growth. Our government will operate efficiently and effectively to enable businesses
to succeed and all people in our Region to fulfill their highest potential.
Our vision for 2020 is that all people in our Region will enjoy the benefits of freedom, health,
welfare, and economic security and opportunity. This document lays the foundation for the
achievement of that vision.
Dr. Ali Othman Sindi
Minister of Planning
September 2013
FORWARD BY THE MINISTER OF PLANNING
Kurdistan Region of Iraq 2020: A Vision for the Future iv
Kurdistan Region of Iraq 2020: A Vision for the Future v
TABLE OF CONTENTS
Forward by the Minister of Planning ..................................................................................................................... iii
Table of Contents ..................................................................................................................................................v
Table of Figures ................................................................................................................................................... vii
Table of Tables ..................................................................................................................................................... ix
Glossary of Terms ................................................................................................................................................ xi
Introduction The Kurdistan Vision: Building on History and Opportunities ......................................................... 1
Building on History and Opportunities .......................................................................................................... 2
The Kurdistan Regional Development Vision ................................................................................................ 3
Chapter One Putting People First ....................................................................................................................... 5
Health in Kurdistan ........................................................................................................................................ 5
Education in Kurdistan .................................................................................................................................. 9
Ensuring an Inclusive Society ......................................................................................................................11
The Labor Market in Kurdistan .....................................................................................................................14
The Way Forward .........................................................................................................................................17
Chapter Two Building the Region: Infrastructure ...............................................................................................19
Transportation for a Growing Economy ...................................................................................................... 20
Water and Sanitation for a Growing Economy .............................................................................................21
Electricity to Power Our Region ...................................................................................................................24
Communications for a Growing Economy .................................................................................................. 25
Housing for a Growing Population .............................................................................................................. 26
The Way Forward ........................................................................................................................................ 27
Chapter Three Creating an Economically Prosperous Region ......................................................................... 29
Agriculture and Agro-industry ..................................................................................................................... 29
Enabling the Private Sector for Growth ........................................................................................................31
Environmental Protection ............................................................................................................................. 35
The Way Forward .........................................................................................................................................37
Chapter Four Putting Government to Work for the People ............................................................................... 39
Effective and Honest Government .............................................................................................................. 39
The Budget .................................................................................................................................................. 42
Reform of the Civil Service .......................................................................................................................... 44
The Way Forward ........................................................................................................................................ 45
Conclusion Fulfilling the Vision ...........................................................................................................................47
Monitoring the Progress Toward Our Vision .................................................................................................47
The Responsibilities of the Government and of the People ........................................................................ 50
Kurdistan Region of Iraq 2020: A Vision for the Future vi
Kurdistan Region of Iraq 2020: A Vision for the Future vii
TABLE OF FIGURES
Figure 1.1 Infant Mortality Rates in the Kurdistan Region and Selected Economies, 2010 .............................. 5
Figure 1.2 Physicians per 10,000 Population in the Kurdistan Region and Selected Economies, 2008 ......... 7
Figure 1.3 Student Enrollment by Education Level, 2006-2007 to 2011-2012 .................................................. 9
Figure 1.4 Illiteracy by Gender and Environment, 2011 ...................................................................................12
Figure 1.5 Percentage of Labor Force Unemployed in the Kurdistan Region and the Rest of Iraq, 2011 .......14
Figure 1.6 Labor Force Participation in the Kurdistan Region, 2012................................................................15
Figure 1.7 Employment in the Kurdistan Region by Sector, Percent, July 2012 ..............................................15
Figure 1.8 Percentage of Employees That Reported Receiving Employment Benefits by Type of
Benefit and Sector, 2011 .................................................................................................................16
Figure 2.1 Passengers at Erbil International Airport ........................................................................................ 20
Figure 2.2 Water and Sewerage Service from Public Networks, 2011 ............................................................ 22
Figure 2.3 Electricity Production in the Kurdistan Region ................................................................................24
Figure 2.4 Percentage of People Living in Households of Six People or More, 2011 ..................................... 26
Figure 3.1 Project Capital for Licensed Investment Projects, August 2006 to May 2012 ............................... 32
Figure 3.2 Percentage of Labor Force Underemployed in the Kurdistan Region
and the Rest of Iraq, 2011 .............................................................................................................. 33
Figure 3.3 Garbage Disposal in the Kurdistan Region, 2011 .......................................................................... 36
Kurdistan Region of Iraq 2020: A Vision for the Future viii
Kurdistan Region of Iraq 2020: A Vision for the Future ix
TABLE OF TABLES
Table 1.1 Leading Causes of Death in Persons Under and Over Age Five, 2009 ............................................ 6
Table 4.1 The KRG Budget ............................................................................................................................... 42
Table C.1 Monitoring Indicators......................................................................................................................... 48
Kurdistan Region of Iraq 2020: A Vision for the Future x
Kurdistan Region of Iraq 2020: A Vision for the Future xi
GLOSSARY OF TERMS
Definition
Environmental impact assessment
Information and communications technology
Information technology
Kindergarten through grade 12
Kurdistan Region Statistics Office
Technical and vocational education and training
Abbreviation
EIA
ICT
IT
K 12
KRG
KRSO
TVET
Kurdistan Region of Iraq 2020: A Vision for the Future xii
The overall development vision of the
Kurdistan Regional Government is a
Kurdistan RegionIraq where all the
people enjoy the benefits of freedom,
health, welfare, and economic
security and opportunity.
Kurdistan Region of Iraq 2020: A Vision for the Future 1
INTRODUCTION
After decades of painful struggle, we, the Kurdish
people of Iraq, have achieved a self-governing region
in which we can develop our culture and human
potential. Development in the Kurdistan Region Iraq
has been extraordinary since liberation, spurred by
a highly secure environment and a proven record
of attracting investment. New construction has
sprouted, along with improved electricity supply, new
universities, and new opportunities for a better life for
all. The Kurdistan Region today is far different than
when we started functioning autonomously in 1992.
The central problem we face now is to build on the
achievements of recent years to expand economic
opportunities and create a better homeland for all of
our people, regardless of gender, socio-economic
status, place of birth, age, religion, or ethnicity.
Accordingly, we introduce Kurdistan Region of Iraq
2020: A Vision for the Future to provide a framework
for policy development by government officials, define
five-year policy priorities, and outline the ways that the
KRG is improving opportunities for the people of the
Region.
The Kurdistan Vision:
Building on History and Opportunities
The Development Vision of the
Kurdistan RegionIraq
We are guided by an overall development vision.
In the Kurdistan RegionIraq, all people will enjoy
the benefits of freedom, health, welfare, and
economic security and opportunity.
Fulfilling this vision by 2020 requires an overarching
set of coordinated activities by the KRG that focus
on delivering:
Health and social services that meet the needs of
the population
An education system and labor market opportunities
that will enable the population to achieve its
potential and improve its standard of living
The necessary physical infrastructure
The development of a diversified economy relying
on the private sector
Effective and honest government
Coordination will be important because achievements
in one sector can affect achievements in another.
Improving health not only requires improving the
healthcare system, but also improving our sanitation
systems and our environment. Improving our
agriculture and private sector not only requires
modernizing our laws and regulations, but also
ensuring a healthy and skilled population so that
employees can provide their best effort at their jobs.
Our Region is rich in oil and natural gas. Our
innovative policies for developing our resources have
brought numerous international energy companies
into our Region and created new possibilities for
development. Our Region also possesses significant
natural mineral resources that have not yet been
tapped, and we will learn more about them as we
conduct geologic and mineral surveys.
Because our oil, gas, and natural resources policy is
well-defined and well-known, we do not deal further
with it in this document. Indeed, our ambition is to
be more than an oil and gas economy, or to rely
only on oil, gas, and natural resources. Instead, our
ambition is to use our oil, gas, and natural resources
to support the growth of our private sector. How?
Companies in the natural resources sector can buy
supplies from local businesses, and workers in the
sector can supply many of their own needs from our
growing private economy. In addition, the growth
of the natural resources sector can inspire more
education and scientific research in fields related to
the sector, including engineering, geology, physics,
and chemistry. In these ways and others, oil, gas and
natural resources will serve as one of many enablers
that will help us build a stable and secure society and
a diversified, private-sector economy.
Building on History and
Opportunities
Our Region has an ancient culture and a long
heritage. It has more than 1,000 archaeological and
historic sites, from Shanidar cave and its Neanderthal
skeletons, to the Erbil Citadel, to the Sheikh Choli
Minaret, and all the treasures in our antiquities and
heritage museums in Duhok, Erbil, and Slemani.
In our heritage we have poets, historians, scholars,
diplomats, and dreamers in our past, such as the
minister and historian Ibn Al-Mustawfi of 800 years
ago and the twentieth-century poet Dildar, author of
our national anthem. We have Muhammad Amin Zaki,
a leading modern historian of Kurds and Kurdistan;
Ahmad Nalband, who drew from multiple languages
to create his patriotic and socially conscious poetry;
Muhammad Ariz Jizrawi, who revolutionized Kurdish
music; and Sherko Bekas, the great contemporary
poet. This culture and heritage give us much to
build on.
The Kurdistan Region has functioned autonomously
since 1992 and was recognized as a formal political
entity under the authority of the Iraqi Constitution
of 2005. However, the Kurds are an ancient, proud
people and our arrival to our own government came
with great effort.
The Struggles of the Past
There is no need to dwell on our past how we fought
for self-determination against hostile neighbors and
even a hostile world. But a few details should be
mentioned.
In the Treaty of Svres of August 1920, after World
War I, the Kurds were promised their own homeland,
but the Treaty of Lausanne of July 1923 negated this
promise.
Our rights took a step forward in 1958 when the
provisional constitution of Republican Iraq declared
both Kurds and Arabs to be partners in the nation
and recognized our national rights. But there was
no progress, and in 1961 we rose up against the
oppressive Iraqi state. Although there were times of
no fighting, our rebellion lasted almost a decade.
In 1970, we reached an agreement with the Baathist
government on autonomy as well as representation
in the national capital, but by 1974 this had not been
fulfilled. Another period of suppression began.
From 1974 to 1991, more than 4,000 villages were
destroyed. The worst of village destruction, mass
killings, and Baathist brutality took place during
the 1983 to 1991 period, culminating in the horrible
Anfal Campaign, which included the attack using
chemical weapons on Halabja, killing 5,000 people.
In all tens of thousands, perhaps 180,000, people
were killed.
Finally, in 1991, we rose up against a hostile
Baathist regime after the Gulf War, only to face
counterattacks by the Iraqi military and its
helicopters, leading to a mass evacuation and
humanitarian crisis in which nearly the entire
population fled to the mountains.
This sparked U.N. Security Council Resolution 688
on April 5, 1991, which recognized that there were
Kurdish parts of Iraq. It condemned the repression
in Kurdish populated areas, demanded an end
to this repression, and insisted that international
humanitarian organizations be allowed access,
and opened the way to a mission to report on the
plight of in particular the Kurdish population.
This resolution enabled a no-fly zone, and
protected by this zone, the Kurdistan Region held
parliamentary elections and created the Kurdistan
Regional Government in May 1992.
Unfortunately, disagreements led to two separate
administrations, one based in Erbil and one in
Slemani.
From 1992 to 2003 we endured the double
sanctions the world sanctioning Iraq and Iraq
sanctioning the Kurdistan Regional Government.
We remained vigilant and resilient, and in the 2003
Operation Iraqi Freedom, our official armed forces,
the Peshmerga, contributed to the coalition effort
to liberate Iraq.
We then played a key role in drafting the 2005
Iraq Constitution, which almost 80 percent of the
population voted to ratify.
Finally, in 2006, we unified our two administrations
with the start of the Fifth Cabinet. The Sixth
Cabinet took over in 2009. And now the Seventh
Cabinet is carrying on this legacy.
The Kurdistan Regional
Development Vision
Our history speaks of tragedy, but also of triumph.
We maintained our culture and our identity. The
Kurdish language and arts are alive and vibrant. We
have emerged with our own self-governing region,
an oasis of stability and security in Iraq and an
example that can lead all Iraq to a better future.
And because of our past, we know that all people
deserve to have their human rights protected. But we
still face many challenges.
The vision and policies presented in this document
are meant to be a start to meeting our challenges. In
an era of uncertainty and political unrest, our stability
will help us develop our Region as an essential
crossroads in the Middle East, providing access to a
market of more than 26 million Iraqis in the rest of Iraq,
facilitating exchange among the Iraqi, Iranian, Syrian,
and Turkish markets, serving as a transit region for
pilgrims visiting Iraqs many holy sites, providing
a vacation site for people throughout Eurasia, and
serving as a global air-transit hub.
To capitalize on these opportunities, young residents
of Kurdistan will need to learn languages and
information technology skills and become more work
and service oriented. They will need to work to the
best of their capabilities and to make part of their lives
the idea that a strong work ethic will give them and
their Region the best chance of success no matter
which sector they work in. Likewise, the government
must relieve regulatory and legal barriers to the
private sector, and enable the population to achieve
its potential through better education, health, and
other social services. And we must maintain open
relations with the rest of the world and remain willing
to learn from anyone who can provide information of
value.
This document describes our vision for the future
Kurdistan. We developed this Vision based on much
consultation with and review by development experts,
international agencies, and the ministries.
For each policy area, we present our vision and then
more completely describe how our Region will appear
in 2020. We then provide policy priorities for the five-
year period to 2017 to explain what steps the KRG will
take to accomplish this vision. In the final chapter, we
show how we will monitor our progress and we define
the responsibilities of the government and the people.
Our vision for 2020 and our policies to reach this
vision will:
Put People First
Build the Regions Infrastructure
Create an Economically Prosperous Region
Put Government to Work for the People
CHAPTER ONE
The Kurdistan Region is rich in resources agricul-
tural land, archaeological sites, minerals, gas, oil,
and water. But our most valuable resource is our
people. In this chapter, we provide our vision for
health, education, social welfare, and labor. Focus-
ing on people does not involve only providing impor-
tant government services to help them develop their
potential. It also involves including them in govern-
ment decisions, listening to their ideas, and ensuring
that they feel their government truly represents them.
We discuss the relationship between the people and
the government in the Conclusion of this Regional
Development Vision.
Health in Kurdistan
A healthy population is the foundation of a countrys
success. The health of the Kurdistan Regions peo-
ple is essential to our economic and social success
as well as to the well-being of our population.
Putting People First
Vision
An efficient health system that provides high-quality
essential services to everyone to prevent, treat, and
manage physical and mental illnesses and injuries.
Health Today and in 2020
The Kurdistan Region has a long tradition of excellence
in healthcare, which suffered tremendously during the
previous regime. Over the past decade, dedicated and
skilled professionals have sought to overcome depreci-
ated facilities and lack of investment in the sector.
Many improvements have been made, but many more
will have to follow if the region is to have a truly healthy
population and achieve its vision for the future.
As of 2008 and 2009, depending on the indicator, peo-
ple in the Region have life expectancy, mortality, infant
mortality, and other macro health indicators at levels
that are better than world averages and better than
those in Iraq as a whole. Our next step is to improve
our status and reach the
health levels of the developed
Gulf States and Europe. One
example is the Regions infant
mortality (Figure 1.1).

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31
22
19
19
18
18
14
12
10
10
7
6
11
40
Kurdistan Region
Iraq
Iran
Lebanon
Egypt
Saudi Arabia
Jordan
Syria
Turkey
Kuwait
Oman
Qatar
UAE
Europe
World
SOURCES: World Health Organization, Kurdistan Region Statistics Office (KRSO), and Iraq Multiple Indicator Cluster Survey 2011.
0 5 10 15 20 25
Infant mortality per 1,000 live births
30 35 40 45
Figure 1.1 Infant Mortality Rates in the Kurdistan Region and Selected Economies, 2010
The leading causes
of death in adults in
the Region are largely
consistent with patterns
seen in countries in the
Middle East and North
Africa, including injuries
(mostly caused by road
traffic accidents), cancers,
stroke, and cardiovascular
disease (Table 1.1). As
economic development
continues, we will likely see
communicable disease
incidence fall. With this
welcome trend, we will
prepare ourselves for new
health problems, those that
typically predominate in
industrialized countries
non-communicable diseases and injuries.
The Region has many assets to help it achieve its
health vision for the future, including a large network
of primary health care centers and hospitals that
assure easy access to almost the entire population
to some public care as well as a trained cadre of
physicians who represent some of the best minds
in our Region. The KRG ensures access to care
through its public budget, which funds public
hospitals, public health centers, and physicians, who
provide care to people at very low cost. People also
have access to and use private sector hospitals,
clinics, and doctors whose numbers are expanding
rapidly with limited regulation or oversight. People
usually pay much higher amounts in cash for private
sector care than the same service provided in the
public sector.
This provides a strong base from which to overcome
challenges as we improve our health system for
2020 to provide even better care for the people of
the Region. Our vision is to define and provide a
package of basic health services to be covered by
public financing and offered at each level of care,
and then to have people pay for all other services.
In our future health system, we must increase health
sector funding, the quality of care, and efficiency.
Quality and efficiency need to be improved in
particular in tertiary care, which today does not meet
world standards. We must increase our number of
physicians and hospital beds to meet the needs of
an expanding population and an expected increase
in demand as incomes increase and people demand
care at levels similar to neighboring countries
(Figure 1.2). And we must institute a policy and
regulatory framework for our expanding network of
private sector hospitals to ensure quality and
a process to ensure that new facilities are addressing
national needs.
Our future health system will offer improved health
service delivery. There are a sufficient number of
primary health centers, but the services to be offered
in each type are not defined and many centers do not
offer some of the services that should be provided.
Health facilities, services, and professionals should
be distributed appropriately and fully staffed and
resourced to enhance access, coverage, efficiency,
and quality of care for the entire population. Presently
most physicians work only a few hours in the public
sector before moving to their private sector clinics.
Many public hospitals operate inefficiently because
they have much higher staff levels than would be
necessary to provide quality care. Our future health
system will correct these staffing imbalances. Patient
safety and the quality of care in tertiary care and
emergency facilities are not up to world standards
and can and will be improved.
Deaths Under Age 5 Deaths Over Age 5
Rank Condition # Condition #
1 Prematurity 399 Injuries (all types) 925
2 Septicemia 170 Cancers 463
3 Birth asphyxia 127 Stroke 450
4 Dyspnea 113 Cardiac diseases 442
5 Injuries (all types) 106 Heart attack 359
6 Congenital problems 64 Encephalitis 241
7 Pneumonia 49 Kidney failure 177
8 Neonatal heart failure 42 Diabetes 39
9 Gastroenteritis 23 Respiratory failure 30
10 Peritonitis 18 Hypertension 28
Table 1.1 Leading Causes of Death in Persons Under and Over Age Five, 2009
SOURCE: KRG Ministry of Health.
Policy Priorities
As we look to our future, we have many opportunities
but also many policy choices that must be made to
modernize our health care system. To bring our health
care system in alignment with a 21st-century model of
care, we will focus on four key policy priorities through
2017: financing, clinical services, preventive services,
and public sector management, regulatory, and policy
capacity.
Introducing a sound health care financing
system. The KRG is presently developing a new
strategic approach to financing health care focused
on accountability and a national health insurance
system. A sound health care financing system
should include incentives to guide the system
and thereby help determine the systems quality,
fairness, efficiency, effectiveness, and overall cost.
To achieve these goals, we will pursue most of these
policy actions:
Study, design, and implement a social
insurance system along with the necessary
regulations;
Establish the institutions to set overall policy
goals and manage the new financing system;
Establish a special commission to determine
which basic services should be provided in
public facilities and at what prices;
Encourage the creation of private health
insurance companies to offer supplementary
coverage and to process claims and manage
the system should the KRG wish to contract for
such services;
Develop programs that encourage efficient
operation of hospitals;
Utilize financing options to encourage
development of a robust private sector that
provides efficient, high quality care and that
is properly regulated and consistent with our
goal of insuring all people have access to
affordable health care;
Develop and implement a policy that pays for
physician services based on the amount and
quality of the services they provide; and
Establish a management-training program to
train hospital and policy officials to manage
resources efficiently.
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5
9
15
15
16
18
18
24
26
28
33
33
14
Kurdistan Region
Iraq
Syria
Iran
Turkey
UAE
Saudi Arabia
Kuwait
Oman
Egypt
Jordan
Qatar
Lebanon
Europe
World
SOURCES: KRG Ministry of Health and World Health Organization.
0 5 10 15 20 25
Physicians per 10,000 population
30 35
Figure 1.2 Physicians per 10,000 Population in the Kurdistan Region and Selected Economies, 2008
Improving availability and quality of clinical
services. We will institute policies in the area of
primary care services, secondary and tertiary care
services, and service quality and patient safety.
Primary care is a critical feature of any modern
health care system that directly addresses the
needs and health of the people and over time can
reduce demand for secondary and tertiary care. We
intend to optimize the distribution of primary care
facilities and services across the region to ensure
access to a defined standard package of services
at each facility level; ensure a well-functioning
system for referrals and continuity of care through
different levels of the healthcare system; enhance
the education, training and performance of all health
professionals; and implement strategies to more
easily recruit and retain professionals in rural areas.
We will also work to attract professionals to family
medicine and primary care, create career pathways
for them and, upgrade the professional standards
and use of nurses.
Secondary and tertiary care includes such services
as district general hospitals (secondary) and
specialty, emergency, and teaching hospitals
(tertiary). Our policy priorities for secondary and
tertiary care will include developing standards of
services to be provided, identification of facilities
not meeting those standards, and policies and
programs to bring under resourced facilities up
to the standards set. This may involve improving
facilities and building new ones. We will also focus
on using the private sector to enhance choice and
fill gaps where appropriate within the confines
of improved regulatory systems and clear policy
direction.
To achieve service quality and patient safety, vision,
skills, incentives, resources, and an action plan
are needed. Using the definition of quality and
specific quality domains from the U.S. Institute
of Medicine as a framework, we will introduce
policies that assure that all clinical services are
effective (decisions guided by evidence and
research); patient-centered (services reflect
patient preferences, needs, and values); timely
(services reach patients and providers when they
are needed); efficient (resources are not wasted);
equitable (all patients have equal access to care);
and safe (patients are protected from medical
errors, unsafe medication practices, and hospital-
acquired infections). We will also introduce
a system of hospital accreditation consistent with
international best practices. We will also improve
our human resources by improving undergraduate
and graduate medical education, additional
training, continuing medical education.
Promoting preventive services. Preventive health
services are typically the most cost-effective but
often the least-attended-to elements of health
systems. Our policy priority is to define a package of
key preventive services and implement them at the
most local level of care that is appropriate and safe.
These services will include child health (genetic
screening at birth, growth monitoring, and vision
and hearing screening); immunizations (routine child
and adult immunizations); womens and girls health
(before, during, and following pregnancy, as well as
routine care); adult screening (blood pressure, Type
2 diabetes, cholesterol, cancers, obesity, tobacco
use, depression); environmental health (clean
drinking water, sanitation); highlighting the dangers
of smoking; food and drug safety (regulation and
enforcement of product safety from production to
sales), and a program to reduce injuries and in
particular road traffic injuries.
Improving Public Sector Management,
Regulatory, and Policy Capacity. To achieve
the other priority objectives detailed above, public
sector management, regulatory, and policy making
capacity must improve. This means developing data
and management information systems necessary
for modern policy development, decision making,
and regulatory oversight; improving the human
resource capacity of the public sector in the delivery
of health services and management of hospitals;
and improving the capacity of the Ministry of Health
to manage and regulate the system. The Ministry
of Health will need to expand its capacity to plan,
develop policy, manage contracting, and monitor
providers; draft needed legal changes; and manage
the more complex insurance and financing system
envisioned.
Education in Kurdistan
The turbulent events of history prevented many of
our older residents from achieving their educational
potential. However, with the creation of our Region
and the new powers of the KRG, the opportunity to
educate our younger generations has arrived.
Vision
An educational system that equips our people to
achieve their aspirations and support democratic
values, economic development, and societal
welfare.
Education Today and in 2020
Educating residents of our Region to their full
potential will be critical for our continuing progress.
In the past 10 years, the Region has made great
strides towards expanding access to all levels and
sectors of education. Since 2003, more than 160
new pre-schools, 2,200 kindergarten through grade
12 (K-12) schools, five technical institutes, and four
public universities have been opened. Total student
enrollment has increased by 27 percent over the
past five years, with enrollment growth in secondary
preparatory and post-secondary technical education
leading the way (Figure 1.3).
At the same time and unlike in countries in the area,
our Region provides near-equal gender educational
opportunities. Although boys outnumber girls in basic
and secondary education in some grades by large
amounts at the post-secondary technical education
and university levels, girls are more likely to continue
education than boys. Girls in 2011-2012 accounted
for 54 percent of total enrollment in post-secondary
technical education, up from 46 percent in 2006-
2007. In universities, they accounted for 50 percent in
2011-2012, up from 45 percent in 2006-2007.
Beginning in 2009, the KRG has taken steps to bring
basic and secondary education to international
standards, implementing major reforms. It introduced
a new, more rigorous K-12 curriculum and made
education compulsory through grade 9 instead of
grade 6. Preparation requirements for new teachers in
the basic level (grades 1-9) were upgraded to require
a bachelors degree, and new basic teacher colleges
were established to train new teachers. It also put
in place policies to reduce the high rate at which
students were being retained in the early grades and
instituted two national exams.
Similar progress has been made towards upgrading
the quality of higher education. A teaching quality
assurance system and a continuous academic
development program are being established. An
ambitious effort to modernize curricula, including
learning standards, to meet the labor
market demand has been started.
And we have introduced courses and
requirements in critical thinking and
debate, languages, computer skills,
and basic science.
Efforts to modernize and upgrade
the education system will continue.
Future efforts will address educational
access, quality, relevance, gender
disparities, and transparency and
accountability across all educational
levels. They will also include
modernizing and upgrading the basic
schools, many of which are in poor
physical condition.
We are committed to providing all
with an opportunity to fulfill their
aspirations for increasingly higher
levels and quality of education. This
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o
u
s
a
n
d
s
)
University
Technical institutes
Secondary
Basic
SOURCES: KRG Ministry of Education and KRG Ministry of Higher Education and Scientific Research.
200
400
600
800
1,000
1,200
1,400
1,600
Figure 1.3 Student Enrollment by Education Level, 2006-2007 to 2011-2012
commitment, combined with a growing population,
will mean continuing increases in student enrollment
at all levels of education. Our challenge, which we
will meet, will be to build enough facilities to meet this
natural increase and to reduce the need for double-
shift facilities that limit instructional time.
Our education system in 2020 will achieve consistent
and sustained quality from basic to post-secondary
education, helping us address the needs of the
current and a more diversified economy. Upgrading
the standards and aligning curricula across all levels
of education will be an important part of this effort.
It will contribute to improving student attainment
in sciences, mathematics and languages and
ensure that graduates meet the knowledge and
interpersonal-skill requirement of employers.
We will complete effective implementation of the new
curricula. This will require significantly upgrading
teacher standards and the content and instructional
knowledge of practicing teachers. Providing ongoing
professional development will be important. The
development of teacher aids to practicing teachers
will also be needed. Without them, teachers cannot
be expected to effectively implement the new
curriculum. The preparation of new teachers is also
in need of improvements and needs to be upgraded
to meet the content demands of new curricula and
teaching methods.
KRG education leaders will also aim to improve
the match between what students learn and what
employers demand. In particular, this will entail
developing a closer collaboration between technical
and vocational education and training (TVET)
institutions and the private sector in the development
of curricula, aligning the TVET occupational mix
with the occupational demands of the economy and
increasing the opportunities that the private sector
offers for on-the-job training. While post-secondary
technical education has seen a rapid growth,
secondary vocational education will be the next
priority for upgrading. There will be a need to develop
vocational education opportunities for secondary
students who do not want or cannot pursue a post-
secondary education.
Transparency and accountability also will be
developed. Parents and the public need to know
the progress that their childrens school is making;
students expect that their qualifications are
recognized; and employers expect that graduates
with certificates or diplomas meet their needs.
Providing parents with information about their
childs school may help engage parents to get more
involved in their childs education. And strengthening
evaluation of both teachers and students will help
provide feedback to drive improvement and ensure
the validity of the learning gained.
Policy Priorities
Our efforts through 2017 to improve education will
focus on the following policy priorities:
Ensuring access to all levels of K-12 education.
We will develop and implement a program to build
about 1,000 schools integrated across level and
type of education in line with projected student
growth and the need to decrease double-shift
facilities. Public-private partnerships will be sought
to accelerate the program of school construction
and renovation.
Providing high quality K-12 education. This
will include establishing a high-level committee
to review and align academic and occupational
curriculum standards across levels of education;
increasing K-12 instructional time for students to
international standards; reviewing curricula against
the established standards; expanding the capacity
to provide ongoing teacher development and train
practicing teachers on the new curricula; developing
curriculum implementation aids; reviewing the
curriculum of basic teacher colleges to align with
the basic education curriculum; and conducting
pilot implementation programs with monitoring and
evaluation. It will also include exploring participation
in one or more international assessment program
to benchmark KRI student learning against those of
other countries.
Increasing relevance and success of technical
and vocational education and training (TVET).
Actions include improving the quality of TVET
curricula, facilities and equipment, governance and
teacher training at all levels, secondary tertiary,
and adult; establishing a high level TVET- private
sector coordinating institution to provide inputs in
the design of occupational curricula and improve
the quantitative match between occupational supply
and demand; accounting for employer technical
and employability requirements in the revisions
of occupational curricula; expanding vocational
education capacity and options for secondary
students; placing career counselors in schools to
advise students on education and career paths;
establishing uniform TVET student qualification
requirements that meet employer needs based
on employer inputs; and coordinating the student-
progression process from level to level to ensure
that students receiving diplomas from secondary
vocational education have the skills needed to
continue to the tertiary level.
Increasing transparency and accountability.
Means to achieve this policy goal include
developing and implementing (1) teacher evaluation
and quality assurance programs at all levels of
education; (2) a K-12 student achievement school
report card for parents and the general public;
(3) a Region-wide uniform standard occupational
certificate for two-year technical institutes;
(4) establishment of an Education Management
Information System.
Building on improvements in higher education.
We will continue and accelerate improving quality;
building links with international research centers;
investing in people and infrastructure; fostering the
independence of the universities; strengthening
quality assurance, including establishing an
institutional licensing and accreditation system;
establishing polytechnic universities; continuing
administrative reforms to limit bureaucracy and
put students and staff first; and protecting human
rights and social justice to improve the learning and
working environment. We will add to our curriculum
reforms in languages, information technology (IT),
and critical thinking and debate by enhancing our
management training, which will benefit both the
public and private sectors. Private colleges and
universities can make an important contribution to
education in the Region, for example by introducing
innovative methods and new courses of study. We
will endeavor to continue to welcome them while
ensuring that their quality is high.
Ensuring an Inclusive Society
Vision
A society in which all people in the Kurdistan
Region Iraq can achieve their maximum potential
regardless of gender, socio-economic status,
place of birth, age, religion, or ethnicity.
Our Inclusive Society Today and in 2020
Our Region has a remarkably diverse population.
We have different ethnicities and religions. We have
people of different abilities and different backgrounds.
We have people who have suffered from war and
genocide, and people who have known only peace.
We welcome all these people and find strength in
our diversity. We want a society by 2020 in which a
person of any background is free to pursue his or
her lifes goals. We recognize the disadvantages of
women and girls; the impoverished, widows, and
orphans; political prisoners, the victims of oppression,
and relatives of martyrs and genocide victims; and
ethnic and religious minorities. We not only want to
help the disadvantaged, but we also want to ensure
the development and inclusion of our youth.
Improving the status of women and girls. Women
make an important contribution to our society in the
working world and the home. Today, our laws protect
women from discrimination. We have women business
people, women professors, and women members
of Parliament. But social and cultural considerations
continue to restrict the equal access of women to
resources and leadership positions in society. The
majority of women in our region report that they have
not reached the level of education they wanted
(62 percent) and many report they do not work due
to lack of educational qualifications (13 percent). In
fact, literacy is too unequal (Figure 1.4). We must
make sure our girls and women are educated, know
how to read and write, and know how to work with
numbers.
Nearly 20 percent of women are married before the
age of 18, and some are even married before the
age of 15 (4.5 percent). In our Region by 2020, we
aim to narrow the literacy and school enrollment
gap between men and women. We aim to ensure
that women understand their legal rights and are
encouraged to engage in activities outside their
homes if they want. And we aim to ensure that
women have equal opportunities in all activities in
society.
The impoverished and vulnerable populations.
Our society has always had traditional safety nets in
place in the form of aid from family, the community,
and religious organizations, which helped meet the
needs of vulnerable populations such as the very
poor, disabled, and widows and orphans. We have
made strong efforts to enhance these traditional
safety nets. Working with the national government
of Iraq and the World Bank, in 2009 we created
a comprehensive poverty reduction strategy that
has four goals: (1) creating income-generating
opportunities for the poor; (2) empowering the poor
to exercise their rights, (3) building the capacities
of the poor; and (4) establishing a social safety net
for the poor. The term social safety net means a
collection of specific government programs that
transfer money to the poor under certain conditions,
without any obligation by the poor to contribute to
the programs in advance or pay the money back.
Based on these goals, the strategy has six
projected outcomes. These are: (1) higher income
for the poor from work; (2) improvement of the
health status of the poor; (3) dissemination and
upgrading of education for the poor; (4) a better
living environment for the poor; (5) effective social
protection for the poor; and (6) less inequality
between poor women and men.
Our aim is to improve living conditions of the poor,
address the causes of poverty, and foster upward
mobility. This will take further improvement of our
poverty programs. Many members of marginalized
groups are still struggling today. Iraqs food ration
program the Public Distribution System has
provided food rations to 99 percent of the countrys
population, including both the poor and non-poor.
These subsidies have driven down the price of
food, which has been beneficial for some but had a
negative effect on farmers, who comprise a majority
of the rural poor. Other support programs provide
necessary relief to some in need, but many of the
beneficiaries are actually not poor. Our goal is to
redesign our programs so that by 2020, assistance
is targeted to those in need and creates economic
opportunity for all.
Political prisoners, the victims of oppression, and
relatives of martyrs and genocide victims. The
KRG has made strenuous efforts to recognize those
who died or made significant sacrifices in defense of
the Kurdistan Region. Nine annual events have been
established to honor both the heroes who were killed
while defending their people as well as their families
who must continue to endure their sacrifice. The
government has also provided financial support for
these families who have lost loved ones, including a
monthly salary and support for healthcare, education,
and housing.
35
30
25
40
45
20
15
10
5
0
P
e
r
c
e
n
t

Male Female Urban Rural
SOURCES: KRSO and Iraq Knowledge Network.
17
36
24
38
Figure 1.4 Illiteracy by Gender and Environment, 2011
Ethnic and religious diversity. Our Region has
accepted the idea that it is a diverse society. Ethnic
and religious minorities Christians, Yazidis, Turkmen,
and Arabs, among many other groups live and
work in the Region. And our government includes
more than just ethnic Kurds. Our Region must ensure
that all its peoples and all of their languages and
religions are accommodated and fully respected
within our vision of a better society.
The development and inclusion of our youth. We
have a young population. Two-thirds of our population
is 30 years old or less, and half our population is 20
years old or less. These are the people who will build
the new Kurdistan. We have been taking steps to
address the challenges faced by our young people
and to celebrate their talents, including expanding
college enrollment for preparatory school graduates,
celebrating World Youth Day for a full month, and
initiating a discussion on how to improve youth
representation in the policy making process. Recent
surveys have shown that youth in Kurdistan have
levels of happiness higher than those of the youth
in the rest of Iraq. We want to ensure that our young
people continue to have opportunities to develop
themselves mentally, physically, and socially, that
they have strong career opportunities, and that they
are connected to other young people within and
outside of Kurdistan.
Policy Priorities
Our program through 2017 for disadvantaged groups
will include the following policy priorities to ensure
that no person in our Region will suffer because of
who they are or because they have been struck by
misfortune:
Assuring equal opportunities for girls and
women. Our policies for women and girls stretch
across all domains, including education, labor
markets, private sector development, and social
support. In the area of social support, we will
enhance social protection to provide additional
child-support payments so that low-income
mothers with small children can more easily
continue their education. We will work to make
educational and vocational training programs more
accommodating to the needs of full-time mothers.
And we will address gender violence. In our modern
society, there is no place for honor killing and
female genital mutilation, and we will work to legally
ban these and to enforce these bans strictly. There
is also no place for domestic violence, and suicidal
burning, especially among young females in rural
areas, and we will combat this by improving legal
protection of women and creating a network of
organizations and financial assistance programs to
aid the victims of domestic violence.
Reducing poverty and improving the social
safety net. We will continue to implement the
poverty reduction strategy aggressively. Poverty
is concentrated in the countryside and in the
farming sector, and we will address these spatial
and sectoral concerns by making sure that our
education, health, labor market, and infrastructure
initiatives include rural areas, and not just the
cities. This includes improving mass transportation
between rural areas and cities to facilitate access
to jobs, and improving the availability and quality
of healthcare. As part of improving the social
safety net and aiding poor farmers, we will reform
our aid to the poor to feature cash transfers rather
than in-kind provision. Today our major in-kind
assistance programs are public housing and food
rations. However, these are poorly provided and
poorly targeted. Properly identifying the poor and
ensuring they have enough money for a basic, but
decent standard of living will be our policy goal.
Furthermore, we will design these programs so they
encourage people in poverty to seek employment,
rather than causing them to stay out of a job so that
they can retain their benefits.
Encouraging development of non-governmental
organizations. Poverty, gender inequality, and
intolerance of ethnic and religious groups are
social problems and thus require involvement from
social actors. We will work to attract non-profit
non-governmental organizations and private sector
organizations to assist the poor and vulnerable
groups. NGOs can become an important link
between officials who implement the programs and
program recipients by creating outreach campaigns,
gathering information about program effectiveness,
and attracting private sector resources.
Strengthening our laws against
discrimination, and their enforcement. All
groups in Kurdistan must have an equal chance
for success and be granted respect for their
basic humanity. We will review and strengthen our
laws against discrimination and strongly enforce
them to make sure all people are treated equally.
Assuring the development and inclusion of
our youth. Many of our health, education, and
labor policies will help our youth. We can do
more, and in all that we do, we will make sure
we reach our rural youth. Through such events
as annual Kurdish youth festivals, field trips, and
internet-based symposiums we will help our
young people connect to each other in Kurdistan
and in the world. We will develop outreach
programs and television programs to help young
people consider their career paths and enhance
their knowledge of our culture and our Region.
We will also develop and expand sports leagues
so that young people can stay healthy and meet
each other in a safe environment.
The Labor Market in Kurdistan
Vision
A private-sector labor market in which
employees can find jobs, can move to better
jobs when they want, and are rewarded for
their work, and in which employers can find
qualified employees and freely employ who
they want.
The Labor Market Today and in 2020
Our economy is growing rapidly and needs an
engaged and educated labor force to support the
Regions development. People who want to work in
our Region have a better opportunity to get a job
than do the people of surrounding countries. Our
unemployment rate is lower than that in the rest of
Iraq (Figure 1.5) as well as that in Turkey, Egypt,
and Syria. Our rate differs by gender, with almost
13 percent of women in the labor force unemployed
and less than 5 percent of men in the labor force
unemployed. But even the female unemployment rate
is a considerable achievement and is lower than the
same rate in Egypt and Syria, and similar to that in the
rest of Iraq and Turkey.
Today, almost 1.2 million people aged 15 years or
older are in the labor force, meaning they either have
some form of work or are actively seeking work. This
is about 40 percent of the population aged 15 years
or older. Many of those not working are supported
by relatives who work for the government or by
government assistance. Labor force participation
rates are substantially higher for men than for women.
The latest data available indicate that that about
67 percent of working-age men and 14 percent of
working-age women were in the labor force, either
employed or actively looking for work (Figure 1.6).
The population of our Region is very young, with
about 50 percent of residents aged 20 years old
or younger. Over the next 20 years, our Region
will experience a dramatic demographic shift in
its labor force as this segment of the population
reaches working age. There will be a net increase of
approximately 850,000 to 1.1 million new job seekers
who wish to join the labor market during this period.
14
10
12
8
6
4
2
0
Males in
Kurdistan
Females in
Kurdistan
Kurdistan
Region
Rest of Iraq
P
e
r
c
e
n
t
5
13
6
8
Figure 1.5 Percentage of Labor Force Unemployed in the
Kurdistan Region and the Rest of Iraq, 2011

By 2020, we envision an economy in which men
and women who want to work can find jobs in the
private sector. We want these to be jobs that match
the skills and abilities of our workers. Right now, we
face considerable underemployment, more than
17 percent, with many of our people wanting to
work more than opportunity allows. Our policies are
intended to change this.
One area of focus is skills. Our population needs
more skills to succeed in the private sector, and our
growing private sector needs employees with better
skills. They will need to speak the languages of our
neighbors and of international business, they will
need to be able to use IT in many types of jobs, and
they will need to work at international standards in
their chosen professions.
Another area of focus is labor and pension laws. Our
labor and pension laws are antiquated and in need
of reform to ensure that private sector workers have
protections and benefits that are fair and that will
attract more of the working population into the private
sector. Laws regulating the hiring of foreign workers
have also not been strongly enforced, and as a result,
many private sector employers are employing foreign
workers for jobs that residents of our Region should
perform. Payments into the pension systems
by both workers and employers have not been
consistent and have been too low.
Finally, we must rebalance our economy.
Today, the government employs a majority of
the working population, but this is no longer
sustainable, especially with our growing labor
force. Hiring more government officials is
becoming beyond the reach of our budget
and will lower our ability to use our budget
to invest in necessary infrastructure. More
important, we wish to expand our economy,
and developing a healthy and innovative
private sector is the best way to do so. Such
a private sector will need access to a pool
of labor from which it can hire qualified
employees.
During the era of the double sanctions
between 1991 and 2003 we had people who were
eager to help themselves, but no private sector where
they could find jobs. So the government stepped in
and provided jobs so people could eat and gain self-
respect from contributing to society through honest
work. But that time has now come to an end.
Almost 560,000 people, more than half of all
employed people in the Kurdistan Region, work
in government (Figure 1.7). This number includes
people who work directly for the government, a small
100
80
60
40
20
0
1524 2534 3544 4554 5564 65+
Age group
P
e
r
c
e
n
t
Male
Female
SOURCE: Kurdistan Region Labor Force Survey.
Figure 1.6 Labor Force Participation in the Kurdistan Region, 2012
SOURCE: Kurdistan Region Labor Force Survey.
Other sectors
0.7%
Government
50.4%
Private sector
48.9%
Figure 1.7 Employment in the Kurdistan Region by Sector,
Percent, July 2012
number who work for state-owned enterprises,
and a small number who work in mixed public-
private enterprises. About 80 percent of all
employed women in the Kurdistan Region work in
government, and 45 percent of all employed men
work in government.
We know that we will be able to rebalance
employment away from the government and to the
private sector. Many civil servants have skills and
characteristics, such as strong language ability
and desirable levels of education, that will allow
them to leave government jobs and find gainful
employment in the private sector. More than one-
fifth of our civil service workers already work in
both the government and private sectors, and the
jobs nearly all of these workers hold are in different
occupational specialties.
This effort will need to involve reforms in
compensation, making the private sector more
attractive than it is. Although for most occupations,
wages in the private sector are higher, civil service
employment benefits are more attractive than
those offered by the private sector. More than 80
percent of civil service workers receive health
care, retirement, and paid vacation, whereas less
than 20 percent of workers in the private sector
enjoy the same level of benefits (Figure 1.8). Civil
servants also enjoy regular working hours and a
greater sense of job security than private sector
employees, making the government sector more
stable and predictable than the private sector.
Policy Priorities
Our program through 2017 to improve the labor market
will include the following policy priorities:
Instituting legal reforms. This will include
modernizing the labor law so that it provides for
a flexible labor market in which workers are free
to compete for the jobs they want and employers
are free to maintain the workforces they need. Our
standards for this law will be the labor laws of the
economically advanced countries countries that
have the levels of economic and human development
to which we aspire. Legal reforms will also include
a better functioning of the market for imported labor
so that our population can have a good chance at
attaining employment.
Ensuring our workforce is highly skilled. In
addition to our education goals, we will investigate
policies that enable university students to work at
trainee jobs and internships while they are enrolled,
that will enable companies to pay for training for
their workers more easily, and that will enable our
residents to find life-long learning and skill-building
opportunities.
100
80
60
40
20
0
Paid sick
leave
Annual leave
compensation
Retirement
cointribution
Paid maternity
leave for women
Percent of employees reporting each of these benefits
P
e
r
c
e
n
t
Government
Private
Figure 1.8 Percentage of Employees That Reported Receiving
Employment Benefits by Type of Benefit and Sector, 2011
Introducing pension and benefits reforms.
Reforms will include the creation of a state pension
system that makes the prospect of joining our
growing private sector attractive. Our goal is a
comprehensive pension system that addresses
retirement age and the relationship between the
level of pension benefits, the length of employment,
and wages earned. Besides providing adequate
benefits, such a pension system should be fiscally
sustainable and efficient and allow for movement
from the public sector to the private sectors.
As mentioned in the section on healthcare, the
introduction of a healthcare financing system will
also help make the prospect of joining the private
sector more inviting.
Developing a comprehensive unemployment
insurance system. The system will protect
individuals from unexpected job loss, and will raise
the security of working in the private sector.
Helping women enter the labor market and
succeed. Our economy will be stronger if women
who want to work are able to work. Policies to
enable this include better and more frequent mass
transportation that allows women more flexibility in
their working hours, training and financing programs
targeted at women entrepreneurs, and stronger
and better enforced anti-discrimination laws. Our
governments statements and actions will also show
that women deserve equal opportunities in the labor
market, and we will seek to provide contracting
opportunities to women-owned businesses.
The Way Forward
Our government puts the people of Kurdistan first in
our actions and policies. Our program for improving
the lives of our people includes a coordinated set
of policies that will elevate the quality of life in the
Kurdistan Region.
We will work to institute government actions that can
produce a healthy, educated population regardless
of gender, socio-economic status, place of birth, age,
religion, or ethnicity that can find rewarding jobs and
that will not suffer unduly when struck by bad luck,
such as a job loss or a death in the family.
Good health will enable people to focus on their
education and to work hard as employees or
business owners. A modern labor market will enable
people to find jobs that will provide money to maintain
their health and support the education of their
children. And the social safety net will give people the
ability to emerge from adversity to good health and
employment.
A healthy, educated population can reach its full
potential only if it has adequate infrastructure to
support it. In this chapter, we present our vision and
policies for building this infrastructure.
Infrastructure Today and in 2020
Our infrastructure was severely neglected for many
years before liberation in 2003, and the Region
suffered with limited basic services. However, the
KRG has recognized the need for investment to
support the regions growing economy and the
well-being of the population and has undertaken
many significant infrastructure development projects
to address the shortfalls. We now have frequent
air transport that connects us easily to all parts of
the world, strong information and communications
technology that lets us connect to each other and
to the world, and levels of electricity generation
unknown in the rest of Iraq.
Still, we face infrastructure challenges. Not only
must we continue to rebuild our infrastructure in an
environmentally sound manner, but we must also
keep pace with an expanding population, economic
growth, a developing private sector, and an influx of
foreign investors, all of which demand an increase in
the level and quality of services. We have had many
successes, but significant challenges remain. We will
meet these challenges in transportation, water and
sewerage, electricity, communications, and housing.
Overall Policy Priorities
Our overarching policy priorities through 2017 to
improve the infrastructure in our Region include:
Pricing infrastructure correctly. For all areas of
publicly provided infrastructure, our overarching
policy will be to design tariffs that reflect the full
cost of service provision, whenever possible, so as
to avoid excessive usage and avoid government
deficits. This need not mean that the poor will have
trouble paying. On the contrary: In each case, we
will strive to have basic amounts of service, such
as water or electricity, provided at a very low price
to the user, and then larger amounts provided at
increasing prices to the user. This will ensure that
we have enough money to invest in infrastructure
that can reach the poorest and most isolated parts
of our region.
Using infrastructure to promote the efficient
development of the Region. We will focus on
developing infrastructure that will knit the Region
together, make it easier for all residents to interact
and communicate with each other, and aid uniform
development across the region. We will design our
infrastructure in a way that will allow transportation
corridors to serve as spaces for water pipelines,
gas and fuel pipelines, and telecommunications
and electric power lines, and therefore to maximize
available open space and preserve our historic city
centers.
Using infrastructure to build the private
sector. We will also work to foster private sector
participation in infrastructure provision to promote
economic growth and improve the quality of life.
When there is a national interest for the government
to be involved, or if the private sector alone is
unable to provide services, we will foster public-
private partnerships.
CHAPTER TWO
Building the Region:
Infrastructure
Transportation for a
Growing Economy
Vision
A transportation network that connects every
inhabited location in the Kurdistan Region
to every other inhabited location in the Kurdistan
Region and to the world.
Transportation Today and in 2020
Construction at two international airports, in Erbil
and Slemani, and new international air services have
greatly expanded our Regions air transportation
network in recent years. The Erbil International
Airport expansion increased capacity to 3 million
passengers per year, with a significant increase
in capacity for cargo shipments as well. Slemani
International Airport capacity stands at 1.5 million
passengers per year. Adding to our rapidly
expanding air services, in 2012 we broke ground on
Duhok International Airport, which will be the third
international airport in the Kurdistan Region and is
scheduled to open in 2015.
This construction and expansion has enabled
and will continue to enable a rapid expansion
of both passenger traffic and cargo. For example,
passengers at Erbil International Airport increased
to 947,600 in 2012, more than 52 percent higher
than the 621,870 passengers the year before
(Figure 2.1). Since 2006, passenger traffic has
grown an average of 34 percent annually. Total cargo
traffic in 2012 hit 27,849 tonnes, almost 57 percent
higher than the 17,769 tonnes from the previous year.
Growth in passengers and cargo is projected to
continue increasing at both airports. We will ensure
that these increases continue and that we become a
key air transportation hub.
We have many newly paved roads throughout
the Region, but the road network does not meet
current needs, particularly in the rural areas, and we
need more highways connecting cities, towns, and
villages. Our Region also faces problems with the
quality of existing road construction and with lack of
comprehensive, systematic, and accessible data at
the Regional level on present and expected future
population and industrial activity to inform road and
transportation planning. This situation will change.
We completed a roads and highways master plan in
2012 that will guide our ground transportation efforts.
By 2020, our goal will be to have a strong ground
transportation network that will enable our residents
100,000
200,000
300,000
400,000
500,000
600,000
900,000
800,000
700,000
1,000,000
0
2006 2007 2008 2009 2010 2011 2012
P
a
s
s
e
n
g
e
r
s
SOURCE: Erbil International Airport.
Figure 2.1 Passengers at Erbil International Airport
and businesses in cars and trucks to travel easily
throughout the Region, and a railway system that
meets the Regions needs. We will also improve our
mass transportation systems and are now designing
a tramway to transport residents of the Region
throughout the three governorates. Our goal with
mass transportation is to have efficient transportation
options to reduce traffic congestion and for people
who do not have cars or who prefer not to use them.
Policy Priorities
Our transportation policy priorities through 2017 to
support the Regions growing economy will include:
Continuing to develop Kurdistan as an air
cargo hub. Our modern airports will give us
the opportunity to become a logistics hub for
southwest Asia and beyond, and to become an
essential node between Europe and East Asia.
Taking advantage of this opportunity will also
enable us to foster economic development near
our airports in the form of free zones and industrial
parks.
Upgrading the Regional road network. A
network of well-paved roads is the key to economic
development and the expansion of commerce
and tourism. We will continue to build and improve
our primary roads that connect major population
centers. A strong road network is also the key
to improving living conditions in rural areas and
promoting strong mass transportation networks.
We will institute a national paving program for
secondary roads to ensure that all secondary roads
are paved and well maintained. As part of this
program, we will upgrade construction standards
for input materials to increase durability of the new
roads. We will also create a road maintenance
fund to pay for the maintenance of the existing
roads, and support this fund with the appropriate
institutional and regulatory frameworks.
Improving mass transportation systems.
People need access to employment, community
resources, medical care, and recreational
opportunities. Travel by car provides high levels
of mobility, but it may also lead to congestion,
pollution, and accidental injuries. Mass
transportation provides people with mobility while
safeguarding against many of these negative
effects. Therefore, we intend to develop a safe,
efficient mass transportation system, building on
current systems and our current tramway design
efforts. Our policy will enable private providers
and public-private partnerships in addition to
the possibility of public transit, and will balance
ridership against cost recovery and fiscal
sustainability.
Water and Sanitation for
a Growing Economy
Vision
Water security for all, and water and sanitation
services that reach every home and supply every
industry.
Water and Sanitation Today and in 2020
We are fortunate to have water resources throughout
our Region, including such rivers as the Tigris, the
Great Zab, the Little Zab, the Khabur, the Sirwan, and
the Awa Sipi, along with rainfall and groundwater,
including natural springs. Among our major rivers,
almost 60 percent of the flow originates in our Region.
However, we do not have adequate estimates of our
groundwater resources. In fact, we do not have a full
study of our water resources, so we face a very high
risk of mismanaging our water supplies and especially
of depleting our groundwater. We will correct this
situation in our quest to provide water security for the
residents and businesses of our Region.
Numerous projects are completed or underway to
improve water management and the clean water
supply in the Region, including the development of
a management plan for the Great Zab river basin,
and new water treatment plants. Ninety-five percent
of our urban households and 62 percent of rural
households access drinking water through the
general water network. In fact, fully 70 percent of our
residents get their drinking water piped directly into
their homes from improved sources. However, access
to clean drinking water remains a key challenge for
the Region, especially for rural areas. Only 25 percent
of urban residents and 18 percent of rural residents
report being able to access the general water network
for more than 10 hours each day (Figure 2.2).
Periodic droughts negatively affect the Regions
water stores in reservoirs behind our major dams,
and discrepancies between the governorates in
levels of rainfall have led to serious shortfalls in
some areas. Finally, even though much of our river
water originates from within our Region, we are still
susceptible to disruptions in water supply because
some of it originates in other countries and parts of
our Region experience low levels of rainfall.
Progress has been made in the provision of water for
our growing population, but sewerage management
in the region has not kept pace. Improvement to
sewerage services will be a major emphasis through
2020, with benefits to the health of our population
and the environment. Service in rural areas
especially needs to be strengthened. In those areas,
only 10 percent of our households are connected
to the public sewerage network, and, subsequently,
more than 50 percent have to use outside covered
canals. There is a more extensive sewerage system
in the urban areas, but still less than half of the urban
population uses the public network and almost one
third uses outside covered canals. The inequality
in access to services between our urban and rural
areas must be addressed.
100
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60
40
20
0
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Rural
SOURCES: Kurdistan Region Statistics Office and Iraq Knowledge Network.
Drinking water
from the general
network
General network
water available
more than 10
hours daily
Connected to
Public Sewerage
Network
Figure 2.2 Water and Sewerage Service from Public
Networks, 2011
Policy Priorities
Our focus through 2017 for improving water and
sanitation services to residents of our Region will
include the following policy priorities:
Completing a full hydrological study of the
Kurdistan Region. Such a study would assess
both the quantity and quality of all natural water
sources, including rivers, groundwater supplies,
and aquifers to better understand groundwater
potential, and would analyze water inputs, uses,
storage, and flows. It would quantify rainfall and
snowfall trends and patterns, runoff of this rainfall
and snowfall into streams and groundwater,
recharge rates into groundwater, evaporation rates
from agricultural lands, irrigation channels, and
other lands, and wastewater return flow, among
other important categories. We expect that this
study will provide the baseline on which we will
determine all future management and investment
decisions.
Completing an integrated water resources
management plan. Building on the hydrological
study and on our work on management of the
Great Zab river basin, we will make strong progress
on the development of an integrated water
resources management plan for the Region. This
plan will help us develop and manage all our water
resources to make sure we have the right quality
and quantity of water for the health of the people
and for agriculture, industry, and all other parts
of our economy, while at the same time helping
us sustain our ecosystems and environment. It
will also help us design well-planned programs
to attract local and international investment in the
water sector. As part of designing and fulfilling
this plan, we will strengthen connections among
water-related institutions in the Kurdistan Region,
and between those institutions and international
institutions. We will disseminate public information
to increase public awareness about water use and
treatment so all residents of the Kurdistan Region
can help safeguard this precious resource.
Increasing access to clean water. We will continue
our efforts to provide universal access to clean water,
focusing on increasing access to drinkable water
in rural areas and improving the quality of drinking
water in both cities and villages. Our strategy for
improving water access will entail five elements: (1)
estimating the amount of water leakage in the existing
water transportation infrastructure and supporting
investments to eliminate it; (2) investing in water
storage facilities to address seasonal fluctuations;
(3) upgrading water treatment infrastructure to
international standards; (4) expanding opportunities
for private participation in water provision; and (5)
reforming the water tariff system to reduce waste and
provide for cost recovery.
Upgrading sewerage systems. To protect our
environment and public health, the expansion
of water access must be accompanied by
investments in sewerage. We will develop a Region-
wide sewerage plan to invest in treatment plants
and infrastructure; make water and sanitation
infrastructure an integral part of city planning; help
residents of low density areas install and maintain
septic tanks and expand infrastructure for refuse
collection and treatment; create facilities to treat
industrial waste; and introduce a system of municipal
taxes and user fees to pay for sanitation services.
So that we may not only protect the environment and
public health, but also aid our economy, we intend
that water treated by the new sewerage treatment
plants will be recycled for agricultural purposes.
Electricity to Power Our Region
Vision
Electricity services that are reliable and
available to every home and every industry in an
environmentally friendly way.
Electricity Today and in 2020
Great strides have been made in the generation of
electricity for the region through private independent
power producers (Figure 2.3). Today we have
electricity for many more hours of the day than
anywhere else in Iraq. Electricity improvement
projects throughout the region have totaled about
U.S.$5 billion. By 2020, we will have 24-hour
electricity and become an electricity exporter. The
level of access to our main electricity grid for both
our urban and rural areas is close, unlike access
to water and sewerage services. Approximately 72
percent of urban and 64 percent of rural households
report that their main source of electricity comes
from the public network, while 28 percent of urban
and 34 percent of rural households report using
shared generators as their main electricity source.
Although access to the main electricity grid has
improved greatly, we need improvement in hours
of supply and many households still experience
electricity cut-offs lasting 12 or more hours a day.
In addition, demand for electricity is increasing.
As new office buildings, factories, hotels, housing
complexes, and other facilities are built, and the
income of the Regions people increase, the need
for efficient management of electricity generation,
transmission, and distribution is critical. Increasing the
efficiency with which we manage our infrastructure
and ending shortages are among the key electricity
challenges our Region faces.
Policy Priorities
Our focus through 2017 for improving electricity
services to residents of our Region will include the
following policy priorities:
Improving electricity provision. We have made
tremendous advances in electricity provision by
inviting generation by private firms. In extending
service to a full 24 hours, we will explore new
institutional arrangements to encourage competition,
for example by separating electricity generation
from transmission and distribution and allowing
local-government-owned or private companies to
distribute electricity to customers, and collect tariffs.
We will also explore instituting a better system of
tariff collection, for example, by introducing a smart
grid system that enables automatic monitoring of
meters and that can send automated text messages
to customers with the amount they owe, and by
increasing the number of ways and places that
customers can pay.
500
1,000
2,500
2,000
1,500
3,000
0
2007 2008 2009 2010 2011 2012
M
e
g
a
w
a
t
t
s
SOURCE: KRG.
Figure 2.3 Electricity Production in the Kurdistan Region
Increasing efforts to conserve electricity.
Although proper pricing and improvements to
system infrastructure will be the best methods of
conserving electricity, we will encourage other
means as well. We will develop better standards
for housing and building construction focused on
minimizing power use. We will also communicate
directly with the people about the importance of
conserving electricity.
Introducing renewable sources of energy.
Because of our abundant hydrocarbon supplies,
we will generate most of our electricity with natural
gas. But we have already started exploring the
potential use of renewable energy sources. Their
use may be expensive, especially the initial cost
of building plants that use them, so we will be
careful as we proceed. They may be good for
our environment, but they also must make sense
financially.
Ensuring electricity for industry. We also
recognize industrys need for constant, reliable
electricity service. We will create electricity
systems that provide guaranteed, uninterrupted,
24-hour service to industry, at a price that at
minimum fully recovers cost. This will help us
attract firms that need such service and that can
use our Region as a base to serve all of Iraq and
neighboring countries with their products. We will
also explore extending these arrangements for
guaranteed, uninterrupted supply of electricity to
industrial parks.
Communications for a
Growing Economy
Vision
A world-class communications infrastructure that
enables uninterrupted voice, video, and data
transfer and that includes strong postal services.
Communications Today and in 2020
Our residents have a choice of three fiercely
competitive mobile phone companies. Service
throughout our Region and to the rest of the
world, along with inexpensive subscriber identity
module cards, enables communications to flow
easily. We not only talk, but we actively text as well.
What was a luxury or even impossible only 10 years
ago has become common and useful.
But the demands on the information and
communications technology (ICT) infrastructure
in our Region continue to grow, and wireless and
Internet systems must keep pace with requirements
for more bandwidth, speed, and reliability from new
individual users and businesses. Significant efforts to
expand the ICT infrastructure have been underway
for several years, and we intend for ICT to be useful
to all sectors of society, such as education, health,
the economy, and government. However, coverage
and quality, especially for the Internet, still varies by
area, even within urban areas. We can achieve this
by ensuring our laws and regulations enable the
growth of internet centers. We also want to make sure
all our residents are confident using and working with
new ICT as a means to improve their personal lives
and employment.
Deploying new technologies will help us reach
another goal, that of improving our weather
forecasting. Automated forecasting stations will be
installed throughout the Region, so that residents will
have the best available weather information.
More traditional forms of communication, such as
postal services, still need improvement. Although
we have location identifiers, such as numbers and
names, for quarters, neighborhoods, streets, and
buildings, we do not have reliable and regular postal
delivery to individual homes and businesses, or even
specific street addresses to help people navigate in
cities. This makes deliveries of equipment, goods,
invoices, and payments difficult; these types of
deliveries are standard in the developed countries of
the world and are essential for business. However,
we are committed to moving forward on a system so
that mail can be delivered to people and businesses
at a reasonable price. For example, we are working
on a post code project that will reduce obstacles to
postal delivery. Beyond postal services, we must
also improve our telephone landline service for those
residents who cannot get or afford mobile service.
Policy Priorities
We will pursue two main policy priorities through
2017 to improve our communications infrastructure:
Upgrading ICT infrastructure. In the digital
age, access to the Internet is a necessity. We
will continue reforming our laws, regulations, and
programs to spur private-sector investment in
ICT infrastructure to increase broadband access
throughout the Region and foster competition
so that costs may be lowered. As part of this
continuous reform, we will ensure that all Internet
service providers have equal access to the
network.
Creating a 21st-century postal system. Our
post offices do not deliver mail and packages to
individual businesses and residences because it is
not organized to do so. However, traditional postal
systems are struggling in many countries. We will
focus on improvements to enable regular mail and
package delivery to all people and businesses
at a reasonable price, and then implement
such a system. Such a system could be wholly
government run, but we will also investigate new
arrangements in which it could be wholly private
or a public-private partnership. We will also work
toward the introduction of street addresses to
enable better maps and improved navigation within
cities, and then build on this in the implementation
of our new postal delivery system.
Housing for a
Growing Population
Vision
A vibrant private housing sector in which all
residents of the Kurdistan Region have decent
shelter.
Housing Today and in 2020
Construction is a booming industry in our Region,
especially in the housing sector. The vast majority
of people in Kurdistan live in their own houses.
Throughout our Region, 79 percent of the people live
in houses they own and have completely paid for. In
urban areas, this is 77 percent, and in rural areas, this
is 89 percent.
Despite this rapid construction, individual family
homes are still in demand and our households are
large (Figure 2.4). Part of this is because multiple
families and many generations are living together.
For example, in our Region in 2011, 29 percent of our
households had four or more children, but 61 percent
of our households had six or more total residents.
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10
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Kurdistan Urban Rural Duhok Slemani Erbil
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Figure 2.4 Percentage of People Living in Households of Six People or More, 2011
Major construction projects are underway, facilitated
by government grants of money and construction
materials for individual families to build homes, and
public-private partnerships with international home
building firms to construct housing developments.
Still, the building sector is struggling to keep pace
with the volume of demand, and some of the
projects are not benefiting residents of our Region
as well as we had hoped. Many of our residents
live in sub-standard housing. Some live in informal
housing developments and do not receive adequate
services. And many of our residents have trouble
financing home purchases because our housing
finance systems are inadequate. To solve these
problems, our housing policies will foster private
production of housing for all income levels. And
when the government is involved, we will make sure
to select qualified companies based on competition
to ensure we get the highest quality for the best
price. We will also make sure that this involvement
is transparent, with precise data being collected
and shared, and that the results of government
involvement are monitored and evaluated.
We have already embarked on new solutions for low-
income families. In July 2012, we published a new
affordable housing strategy for the Kurdistan Region,
building on an earlier Erbil housing strategy. And we
have already started implementing this Region-wide
strategy, which includes measures related to land,
financing, housing provision, building materials, and
social infrastructure.
Policy Priorities
Our policy priorities through 2017 to improve the
availability and accessibility of housing include:
Improving land-use regulations. We will review
and reform our land-use regulations to encourage
the supply of units of various sizes and types
of housing at a wide range of prices. As part of
improving land-use regulations, we will consider
formalizing informal housing developments where
possible, including establishing proper zoning and
granting formal title to people who live in these
developments.
Reforming land titling and ownership. We will
strive to make more transparent the ownership
records of each parcel of land so that the private
market in residential land can function more
effectively. This will enable homebuyers, people
who want to buy land for their own new home, or
home developers to more easily find available land
or homes.
Encouraging development of mixed-
income neighborhoods. We will encourage
neighborhoods that contain housing for people of
all income levels. When necessary, we will explore
public-private partnerships to do so, including
concessions to those real estate developers who
agree to provide newly built housing to low-income
families below market price when that housing is in
mixed-income neighborhoods.
Establishing a housing-finance system. We
will review and improve the laws and regulations
related to our financial system to make possible the
widespread provision of long-term housing finance,
such as mortgages, by NGOs or private financial
institutions.
The Way Forward
Our program for improving infrastructure includes
a coordinated set of policies that will elevate the
quantity and quality of infrastructure in the Kurdistan
Region.
Our government knows that people can achieve
their full potential only if they have the physical
infrastructure to support their efforts. We also know
that if we want to provide this infrastructure efficiently
for the benefit of all the people, we must price the
infrastructure correctly and involve the private sector.
A better transportation network will make it easier for
people to get an education, find jobs, and buy what
they need. Better water, sanitation, and electricity will
help people remain healthy and industry to thrive.
Better communications will enable people to share
ideas and businesses to cooperate and compete
with each other. And decent housing will provide
a harbor for our healthy, educated, and employed
population.
We can have a prosperous, diversified, and robust
economy. To support this in this chapter, we present
our vision and policies to create a growing private
sector.
Agriculture and Agro-industry
Vision
Food security for the people of the Kurdistan
Region, economic prosperity for farmers, and
prosperity through the export of our agricultural
and food products.
Today and in 2020
Our Region has a moderate climate and, if managed
properly, water resources, and an abundance of
agricultural land that can, once did, and will support
a thriving agricultural sector. We can once again be
both a major food and agricultural producer and
exporter of wheat, vegetables, fruit, meat, dairy, and
poultry in the wider region and beyond. Much of our
agriculture has reemerged. We produce tomatoes,
eggplant, cucumbers, onions, watermelon, peppers,
and many other fruits and vegetables. We herd cattle
and sheep and keep flocks of chickens. Our wild
honey and Hawler yoghurt are well-known for their
special flavor, and even our uncultivated mountain
areas grow delicacies, such as rewas.
We have already had some success attracting new
investments in agricultural projects. Between August
1, 2006, and May 25, 2012, our Board of Investment
and the Directorate Generals of Investment in our
governorates licensed 19 agricultural investments with
total project capital of US $268 million.
But our agriculture has challenges. The vicious
and drawn-out conflicts before liberation led to the
destruction of the rural environment and collapse of
this once thriving sector. They also left a legacy of
chemical weapons and remnants of explosives that
litter rural areas, and agricultural land that is in need
of rehabilitation. Other challenges include:
Farmer preparation and training. Our farmers
have a long history of agriculture to build on,
but there is a pressing need for better farmer
preparation and training, especially in modern
farming practices and equipment, in order to
increase agricultural productivity. We need to
build up our educational extension services to
provide training on new agricultural practices or
improvements on techniques and methods that
could increase efficiencies and production. In
addition, we need to help farmers learn to use new
technologies for ensuring the health of their crops
and livestock and for improving their productivity.
Agricultural data, research, and planning. Today,
we are not maximizing the use of our land and
water resources. We are developing our agricultural
data, research, and planning to do so, as reflected
in a strategic plan we developed for 2009 to 2013.
Our goal is to build a comprehensive database on
agricultural inputs, crop yields, labor, and land types
that can be used by agricultural engineers, farmers,
and agro-industry to determine the best locations
for growing our agricultural products.
CHAPTER THREE
Creating an Economically
Prosperous Region
Water management. Although we have sufficient
water sources to support a thriving agricultural
sector, the Region needs to better manage these
resources, as noted above in the section on water,
including rehabilitating our irrigation systems and
starting to institute a system of irrigation system user
charges, just as we must start properly pricing all of
our infrastructure.
Agro-industry. We want a thriving agro-industry
in our Region, and to succeed, we will need to
encourage the private sector to invest in cold
storage facilities, transportation logistics centers,
and facilities for packing agricultural products.
Together with the private sector, we must embark on
marketing efforts to show the world our agricultural
products. Our efforts to promote agro-industry will
move hand-in-hand with our efforts to improve the
transportation system, so that our agricultural goods
can be transported easily.
Land ownership. There are also land ownership
issues that must be resolved, and we need to
enable the creation of large farms for greater
efficiencies in production. New legal reforms
allowing ownership of agricultural land to increase
from 75 hectares to 250 hectares will enable
improvements on some of these challenges, but
we will continue to reform our land laws in order to
enable efficient and productive farming.
Policy Priorities
Our effort through 2017 to revive and expand
agriculture and to improve its productivity will focus
on the following policy priorities:
Improving the skills of our farmers. We will review
the current status and quality of agricultural training
in all our universities, our technical and vocational
institutions, and any other institutions that can help
with farmer training. We will endeavor to improve this
training and our extension services in order to equip
our future farmers with the skills that will enable
them to compete in global agricultural markets. This
improvement will include strengthening connections
among the institutions in the Kurdistan Region,
and between those institutions and international
institutions. The skills will include modern
management methods and the ability to use
modern agricultural technology.
Improving the investment environment for
agriculture. We will work to make investment
in agriculture easier to accomplish, for example
by streamlining procedures, and we will work
to ensure that there are rewarding opportunities
for investment. This will not only bring new
technologies and techniques for improving
productivity, but it will also bring new technologies
and improved medicines for ensuring the health of
our crops and livestock. Our investment attraction
efforts will welcome and recruit both local and
international investors.
Improving irrigation to enable agricultural
production. International experience demonstrates
that irrigation systems developed and managed
by farmer groups and based on locally derived
principles of water and land rights, rules, and
obligations tend to be less wasteful than those
constructed by governments. We will work with
farmers to improve irrigation and promote their role
in the rehabilitation and management of irrigation
networks. We will also start instituting user charges
on irrigation to further enhance the efficiency with
which we use our water. And we will incorporate
the findings of the hydrological study noted above
to plan for more efficient allocation of groundwater
for irrigation purposes.
Rehabilitating and managing the land. Besides
water, another important input for agriculture is
the land itself. We will continue and enhance
programs to rehabilitate our rural lands and rid
them of mines and pollutants. We will map lands
that have remained unplanned so that we may
put them into use as farmland. We will protect
our forest and rangelands, plant trees on lands
that need reforesting, improve rangelands for use
by livestock, and support the establishment of
Regional parks. We will adopt land-protection and
management methods to prevent landslides.
Developing infrastructure for the agriculture
industry. We will work with private companies
or explore public-private partnerships to
construct cold storage facilities and silos in
agricultural regions and ensure these facilities have
uninterrupted electricity. Our transportation strategy
will enable better opportunities to move farm goods
to market.
Improving availability of agriculture data and
information. We will also pursue the completion
of rural land surveys and analysis to assess the
quality of soil, locate fertile lands for agricultural
use, identify which crops should be grown in
which areas, and categorize the land according to
agro-climatic zones. To help increase the flow of
information to farmers, we will follow international
practices to promote greater usage of information
and communications technology to create access to
price information at local markets and to set up an
early warning system for pest, livestock, and plant
disease controls. We will also work to share data on
agricultural diseases with neighboring countries so
that we may safeguard our borders.
Implementing legal reforms for the agricultural
sector. Agricultural production entails economies
of scale, and land consolidation is not possible
to realize with the existing caps on ownership of
farmland. We will revise the legal framework to
allow for larger farms that can make better use
of technology and diversify production, reducing
losses due to unfavorable weather conditions.
Minimizing price distortions for agricultural
products. The food ration system constitutes an
important impediment for the expansion of local
markets for agricultural products. This system is a
legacy of the past and has significantly contributed
to the demise of local farming because local
producers cannot compete with free food. To help
farmers and ensure the well-being of our Regions
poor, we will convert the food ration system to a
system that will provide cash instead of food, and
target it to the poor. By halting the distribution of free
food to those who can afford it, we hope to be able
to distribute to the poor an amount of cash even
larger than the value of the current food basket.
Developing our export potential. With a
rehabilitated agricultural sector and our expanded
and efficient international airports, we will be well-
placed to deliver fresh produce, especially fresh
organic produce and processed agricultural goods
to European and global markets. This will provide
far more opportunity than banning imports; although
banning imports may help farmers, doing so will
hurt the poor and vulnerable who are our neighbors,
friends, and relatives. We can develop our export
potential by embarking on trade missions and by
working with major European, Middle Eastern, and
global food distributors and logistics experts.
Enabling the Private Sector
for Growth
We believe Kurdistan should not merely live off
its oil and gas resources. Our diverse population
deserves the stability and opportunities of a diversified
economy.
Vision
A diversified and entrepreneurial private sector
that is open to the world.
The Private Sector Today and in 2020
Development of the private sector is vital to the
Regions growth and development, and our Regions
leaders have placed a high priority on creating an
environment that attracts local and foreign investment
and where businesses can thrive. By 2020, we
envision a thriving private sector filled with new
and growing small and medium-sized enterprises.
Activities that were once conducted by government
under the former regime in Iraq will be carried out
by private firms. By 2020, we will finish privatizing
any factories that are currently under government
ownership. And where government must be involved,
we will seek to have public-private partnerships so that
an entrepreneurial and productivity-focused private
sector can both contribute and benefit.
We have already made progress on privatizing parts
of important growth industries, such as electricity
generation, and we have successfully attracted foreign
direct investment in key sectors, such as housing
construction, banking, tourism, and agriculture.
Our investment climate offers attractive elements
for business, including a secure environment
and an improving infrastructure. Our Regional
Investment Law, Law No. 4 of 2006, is exemplary of
our goal of welcoming foreign investors it allows
foreign investors to own land and enables them to
gain exemptions from most taxes. Our Board of
Investment and Directorate Generals of Investment in
the governorates have licensed 36 foreign investment
projects between August 2006 and May 2012 worth
US $3.5 billion, and 23 joint ventures between Iraqi
and foreign companies, worth US $1 billion (Figure
3.1). Although we place a high priority on investments
in agriculture, industry, tourism, and infrastructure, we
welcome any type of investment that can improve our
economy. Beyond those projects licensed under our
investment law, many more foreign companies are
operating in Kurdistan today-- approximately 1,860
as of April 2012, of which 750 are from Turkey. We
have also developed detailed plans for an industrial
zone in Erbil, including legal, marketing, and
environmental assessments and blueprints. These
plans can serve as a basis for the establishment of
special economic zones that would be attractive to
investors. Despite these substantial achievements,
although we offer a favorable environment for foreign
investors, local businesses especially those
that are small and medium-sized face important
disadvantages that must be addressed if we are to
build a thriving private sector.
Notes: Data for 2006 include only August 1 through
December 31, and data for 2012 include only January
1 through May 25. In addition, the chart does not
show US$150 million for a project jointly in Slemani
and Erbil, although this figure is included in the totals.
Over the next 20 years, our Region will need
to create a substantial number of employment
opportunities as the next generation enters the
workforce. Approximately 50 percent of our Regions
population is under 20 years old, and it is estimated
that an average of 43,000 to 54,000 jobs per year
will be needed to keep pace with these changing
demographics. Private sector employment will be
critical to meeting this need.
Freeing and developing the private sector will help
us meet not only the requirement for new jobs, but
our desire for good jobs. At present many of the
jobs available in our Region do not meet the skills
or desires of our workforce, as shown by our level of
underemployment (Figure 3.2).
Areas that we must work to improve include:
Local financing. One of the most critical challenges
faced by local businesses is the lack of local
financing, including early-stage, working capital, and
equipment loans. This severely limits the number of
businesses that can enter the market and expand.
6,000
4,000
5,000
3,000
2,000
1,000
0
2006 2007 2008 2009 2010 2011 2012
M
i
l
l
i
o
n

U
.
S
.

$
Duhok
Erbil
Slemani
Total
SOURCES: KRG Board of Investment and Directorate Generals of Investment in the governorates.
Figure 3.1 Project Capital for Licensed Investment Projects, August 2006 to May 2012
We have a variety of banks, including local private
banks, foreign banks, and Islamic banks. But we
also have government banks that are making it hard
for our private local and foreign banks to thrive. Our
Region is also missing insurance and mortgage
industries as well, which are important supports
for the development of the private sector. Our goal
is a strong private financial sector that includes
foreign participation and that offers a wide variety
of services. Because our business sector is thriving
compared to that of the rest of Iraq, we anticipate
that our financial firms will gain valuable experience
and by 2020 will be the leading financial institutions
in all of Iraq, serving the entire country.
Access to land. Securing land for new local
businesses can be a difficult and lengthy process.
Our land titling, information, and ownership reforms
for housing and agriculture, described above, will
be extended to include land for businesses to help
the private sector.
Procedures for opening, running, and closing a
business. The legal and regulatory environment for
doing business is outdated and confusing. This is
difficult for all businesses, but is especially difficult
for smaller businesses. There can be lengthy
waits for approvals for business licenses to start a
business, and some businesses require approvals
from multiple ministries. These burdensome
difficulties continue through the life cycle of a
business as it grows and then even if it needs to
shut down.
Utilities and infrastructure. Our Region has made
great progress toward developing its infrastructure
over the past decade, but all businesses and
our overall business climate can benefit from
improvements, as described in the chapter on
infrastructure.
Availability of local labor. Decades of war and
conflict severely affected the education system in
our Region, and as a result, we are rebuilding our
capacity to supply skilled and trained labor to fill
positions in the private sector.
Policy Priorities
Our policy priorities through 2017 for enabling private
sector growth will include:
Improving the legal and regulatory environment
for the private sector. We will embark on a broad
effort to review the legal framework and regulatory
system for registering, operating, growing, and
closing a business with the goal of simplifying and
modernizing the laws and regulations, including
bankruptcy law so failing businesses can close
and their labor and capital move to growing
businesses. Further legal reforms will include a
modern anti-monopoly law, better dispute-resolution
mechanisms, and intellectual property rights so
that as the people of the Kurdistan Region become
more educated, they will have strong incentives to
invent and innovate. We will also institute a quality
control process based on regulatory impact analysis
for proposed new laws and regulations to ensure
that our legal and regulatory environment remains
friendly to business while safeguarding public
welfare.
Advancing greater openness to the international
economy. We will remove import and export
licensing requirements. Where necessary, we will
maintain a short list identifying those items that
cannot be traded rather than requiring all items to
get licenses. We will also increase our openness to
Figure 3.2 Percentage of Labor Force Underemployed in the
Kurdistan Region and the Rest of Iraq, 2011
25
20
15
10
5
0
P
e
r
c
e
n
t

Males in
Kurdistan
Females in
Kurdistan
Kurdistan
Region
Rest of Iraq
the world by reducing the time and cost of crossing
international borders. We will start a process of
surveying truck drivers at the borders to better
understand border crossing times and formalities.
Improving the banking and financial system.
To improve our financial system, we will work to
attract lenders, both local and foreign, that focus
on small and medium-sized businesses. We will
also work closely with the Central Bank of Iraq to
enable banks and financial institutions to offer a
full range of financial services. In order to ensure
private financial institutions can prosper, we will
start a process of depositing civil service salaries
into private banks and wind down the KRGs use
of all government banks. We will work with foreign
insurance companies to start an insurance market
in our Region, and as we noted in our section on
housing, we will work to establish private housing
finance.
Improving land registration and land use. As
with our policies on agriculture, we will reform our
property laws and registries. This will enable small
businesses to start more easily and give banks
and financial institutions more options regarding
collateral, further freeing their ability to lend. We will
also review other aspects of land use in the Region
so that we may ensure that agriculture, industry,
housing, and all other sectors have sufficient and
appropriate land available.
Creating special economic development
zones. In order to attract more investment, we will
pursue the development of full-service industrial
parks, which could serve as special economic
development zones, complete with high levels of
services, including Internet, banking, and business-
friendly regulations. New areas for development of
housing would be sited nearby wherever possible.
In all cases, we will refocus our incentives toward
the hiring and training of local labor, partnering
with local businesses, and attracting industries that
serve regional and global markets.
Opening opportunities for small and medium-
sized enterprises. Many of the policies we
describe will especially help small and medium-
sized enterprises. But we will embark on additional
training programs led by private and international
specialists to equip people with the ability to start
and run businesses, and to ensure that graduates
of these programs will be able to access necessary
finance. We will also make sure that small and
medium-sized businesses have equal opportunities
to win government contracts.
Expanding business opportunities for women.
Our attention to treatment of women runs throughout
our policy efforts, including education, social
support, and labor market policies. Our support
for women in business will include efforts to enable
work-from-home schemes, promoting child-care
centers for working mothers, and ensuring equal
opportunity under the law. In our efforts to establish
training, assistance, and financing programs for
new entrepreneurs, we will make sure the curriculum
addresses issues that are unique to women. We will
also ensure that women-owned businesses have
equal opportunities to win government contracts.
Completing privatization and enhancing private
participation in all aspects of our economy. In
our program through 2017, we will finish privatizing
any enterprises that remain under the ownership
of the KRG. And where government is involved
now or will be involved in the future, we will explore
conducting government activities through public-
private partnerships in order to create greater
opportunity for the private sector and bring private-
sector efficiencies to our economy. In all of these
cases, we will make sure that the private companies
are qualified and well-regulated so that the public is
well-served.
Promoting Regional tourism. We will complete a
master plan for the tourism industry that emphasizes
our natural and cultural heritage and makes it
possible for people of all income levels from
backpacking college students to wealthy resort-
lovers to enjoy our Region. We want them to enjoy
our beautiful landscape and our archaeological
sites, our museums, our music and dance, and
our Regional cuisine, and we want to do this while
minimizing environmental damage. As part of our
efforts to expand our tourism sector, we will simplify
our government procedures and make sure tourist
sites have adequate infrastructure and services. We
will create Regional parks that meet international
standards to preserve wildlife and plant life and, at
the same time, attract visitors, and we will develop
a system of forest rangers to protect forests from
fires and help all visitors preserve and enjoy the
environment.
Increasing availability of data and information.
Finally, we will eliminate information barriers by
regularly publishing information about our economy
and allowing the private sector to carry out its own
market research.
Environmental Protection
We do not want economic success to come at the
cost of ruining our environment the water we drink
and use for our agriculture, the ground we walk on
and farm, and the air we breathe. Our Region has a
diverse landscape and a comfortable climate, and
we need a clean environment for the health of our
people, for tourism, for recreation, and for posterity.
Vision
A healthy and safe environment, with clean water,
land, and air, for posterity and that enables the
economy to grow.
The Environment Today and in 2020
Our Region has astounding natural beauty and a
varied landscape. Our mountain air provides welcome
relief to hundreds of thousands of our residents and
visitors during the summer, and our diverse animal
and plant life make us a nature-lovers paradise.
But we face challenges. We have had little
development of modern systems for protecting the
Regions water, air, or land resources. The vestiges
of the chemical attacks on the rural lands and
water resources remain a serious issue. Increased
urbanization has caused environmental and public
health strains as greater numbers are consuming
more water and fuel, and producing more waste. And
we may be at risk of negative effects from climate
change.
We have undertaken efforts to address our
environmental challenges by establishing the
Environmental Protection and Improvement Board and
passing a law in 2008, updated in 2010, mandating
the Board to protect public health and natural
resources, remove and treat biological and chemical
weapons, and increase environmental awareness.
Still, our Region lacks a comprehensive set of
environmental regulations and monitoring systems to
sustain and protect its natural resources. In addition,
we do not assess the environmental impacts of our
public investments or major infrastructure projects.
Some of the key challenges in protecting the
environment include:
Water resources. We must improve our sewerage
and wastewater treatment systems. The Regions
water sources have been polluted for many years
resulting in contaminated wells, streams, and rivers,
some of which are direct household water sources
for some people, especially in the rural areas. We
must establish new regulations and incentives to
control liquid waste dumping or promote water
conservation and protection at present. And we
must improve our municipal water mains and
the chlorination system, to eliminate water-borne
diseases. New water treatment infrastructure
projects have begun to address this situation, and
increasing numbers of our population are now
receiving treated water. We will continue these
investments to provide universal access to clean
water in the region.
Air pollution. Urbanization is also leading to
increases in the levels of air pollution, mainly due
to the higher volume of personal and mass transit
vehicles on our roads in recent years. Emissions
from these vehicles, which often rely on cheaper,
low quality fuels, contribute to air pollution in our
Region. Pollution from industrial plants, power
stations and generators, and burning of waste are
also contributors to the problem of air quality in
the region. We have taken steps to mitigate these
problems, including programs to get older, air-
polluting vehicles off the road. Other projects to
construct pedestrian bridges and tunnels have been
aimed at decreasing traffic congestion and thus
emissions released into the air from idling vehicles.
Our continued efforts will include new measures to
control and mitigate air pollutants so that all people
in our Region have clean air to breathe.
Waste management systems. In addition
to improving our sewerage and wastewater
management systems, we must improve our
methods for handling solid and hazardous waste.
Burning and burying waste have harmed the
environment and added to air, soil, and water
pollution. Most urban households dispose of their
garbage through collection from their dwelling or
from collection from other places, but more than
40 percent of rural households report disposing of
trash in open areas and 18 percent report burning
or burying their trash (Figure 3.3). In addition,
litter abounds throughout the countryside. Our
most precious outdoor resources nature and
archaeological sites are in a constant battle
with plastic bottles and other trash. We will create
effective monitoring systems and proper oversight of
the movement and disposal of waste.
Policy Priorities
Many of our infrastructure policy priorities, along with
our private-sector policy priorities of establishing
Regional parks, are part of our environmental
program. Additional steps through 2017 will include:
Increasing environmental awareness. We will
strive to increase the awareness of the benefits of
a clean environment. These include benefits to the
health of the population, the economy, and even
the ability of the people to enjoy their lives in our
beautiful Region. We will raise awareness among
government departments and employees, and
among the population.
Developing energy efficient buildings. Existing
regulations and building codes for the construction
industry do not impose any requirements for
using either environmentally friendly inputs or
using building techniques that minimize energy
consumption. We will work with the construction
industry to develop feasible solutions.
P
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o
f

h
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h
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s
100
80
60
40
20
0
Collection Throw in open areas Burn or bury
Urban
Rural
Figure 3.3 Garbage Disposal in the Kurdistan Region, 2011
Strengthening our laws, regulations, and
enforcement. We will review and strengthen our
laws covering water, soil, and air pollution. We will
develop our administrative capacity to enforce these
laws and regulations, and we will create effective
monitoring systems and proper oversight.
Starting to conduct environmental impact
assessments. Major public and private
infrastructure projects can have significant impacts
on the environment, including both the natural
environment and the social environment. Rigorous,
objective environmental impact assessments (EIAs)
are a valuable aid for decision makers as they
weigh the benefits and risks of a proposed project.
We will develop an EIA review process-based on
international best practices that ensures EIAs are
conducted for all relevant government investments,
and we will expand this process to major private
sector development projects.
Developing a strategy to adapt to climate
change. We do not yet know how climate
change could affect our Region. It may influence
the availability of water resources, and it could
stress our agricultural resources or change our
agricultural opportunities. Accordingly, we will
bring consideration of climate change into our
environmental, agricultural, and water policies so
that we may be prepared for potential changes as
they occur.
Supporting environment protection groups. Our
governments involvement in shaping environmental
policy is lower than in other policy areas. Therefore,
we will seek to address this gap by ensuring that
environmental protection groups are free to operate
and increase public awareness of environmental
issues, enhancing the governments environmental
efforts.
Improving the urban environment. We will have
a special focus on improving the quality of living
in urban centers because they serve as magnets
for mobile capital, skilled workers, entrepreneurs,
tourists, and intellectuals. Our three main cities
have experienced unprecedented growth of their
populations and economies, and this has resulted
in higher levels of pollution. We will improve existing
fire, sanitation, and police services to reduce the
danger of fire outbreaks, improve disposal collection
services, and prevent the growth of street crime and
other forms of crime that damage urban quality of
life. We will also continue improving public parks
and cultural attractions and make sure our cities are
family- and pedestrian- friendly.
The Way Forward
Our program for creating a prosperous Kurdistan
economy includes a coordinated set of policies that
will enable the people of our Region to achieve a
comfortable standard of living.
Creating opportunities in all sectors of the economy
will help our healthy, educated population find fulfilling
employment that matches their skills and ambitions.
In creating this high-performing economy, we will
maintain the integrity of our environment so that our
future generations can enjoy the same benefits that
we have. Nothing in our economy will be guaranteed
except for the most important guarantee of all: the
opportunity to succeed if there is an honest effort.
We have achieved our present condition through the
constant sustained effort of the millions who live in
the Kurdistan Region. Thanks to our people, we have
a secure Region and our own Regional government.
Our government is here to work for the people, to
enable them to achieve all that is within their abilities.
In this chapter, we focus on how the KRG will serve
the people of the Kurdistan Region.
Effective and
Honest Government
To be effective, our government must concentrate
on those tasks that only a government can do
well providing law and order and approving
and enforcing sensible and necessary laws and
regulations. But it must also earn the trust of the
people of the Kurdistan Region every day.
Vision
A government that is effective, transparent,
trusted, and honest.
Effective and Honest Government
Today and in 2020
We are a young government, but already we have
many achievements for the benefit of the people.
We have brought about security, invited investment,
embarked on reforms in government budgeting and
information technology, and instituted policies to
improve the health, education, and welfare of the
people.
We are a learning government. We have worked with
development agencies and experts from around the
world to improve the way we operate. We have sent
tens of thousands of civil servants to training programs
and are sending thousands abroad for advanced
university degrees.
We are an improving government. And we must
improve our honesty, transparency, and efficiency. By
2020, our government will be free of corruption and
will fulfill all of its responsibilities fairly and efficiently.
To meet these goals, we must root out corruption,
establish new processes and rules for civil servants,
ensure that the people have access to data, laws, and
government decisions, make sure our government
is organized for success, and properly define our
governments roles and missions.
We will confront corruption by enforcing the rule
of law, ensuring that the civil service has a clear
code of conduct guiding its actions, limiting and
simplifying the number of licenses and permissions
that people must receive from the government in order
to conduct their lives and businesses, making sure
all government functions are open and transparent,
and clearly showing the use of public funds. We will
strengthen our courts and our internal government
inspection system so that we can find and punish
corruption.
CHAPTER FOUR
Putting Government to
Work for the People
We will increase our transparency. We will make sure
that all laws, regulations, and government decisions
are written clearly and then published and distributed
so that all people can find and read them. As we build
up our capabilities to collect data about our Regions
economy and society, we will publish all data, while
safeguarding the privacy of people and businesses,
regardless of whether the data reflect well or poorly
on our government. The people have the right to
know about their Region so they can make their own
decisions.
We will increase our efficiency and effectiveness. We
will more carefully define the role of our government.
During the period of double sanctions, we needed
the government to hold our society together to
provide services, to provide jobs, and even to provide
food. But now we have a growing private sector and
openness to the world. We need our government
to provide security, administer justice, and set the
rules of society and business through wise laws and
efficient regulations. The private business sector
and non-governmental organizations should be
our first choice for providing goods and services,
and where government is needed, we should first
consider public-private partnerships before making
something a government program. Any programs our
government runs must be evaluated and improved.
This shift in our governments role may require a
reorganization of our government and our ministries.
A deep institutional analysis will help us rethink
the way we structure our government in terms of
number and types of ministries and methods of
policy development and implementation. Such an
analysis will also help us rethink the way we structure
our ministries in terms of the numbers and types
of general directorates and in terms of the lines of
control between the central ministry offices and
the general directorates and directorates in the
governorates. This analysis will help support our
policy priorities for effective and honest government.
Achieving our goals to confront corruption,
increase transparency, and increase efficiency and
effectiveness can be helped by the adoption of the
latest information and communications technologies.
We will make sure to spread these throughout the
government so we can communicate better with
the people and within the government, keep better
records on government activities, and gain other
efficiencies enabled by ICT.
Policy Priorities
In the period through 2017, we will pursue
the following policy priorities to enhance our
governments honesty, openness, and efficiency and
effectiveness:
Increasing openness and transparency. Access
to government documents is a fundamental
principle of democratic government. We will strive
to create a system, and consider the creation of an
Office of Government Publications as one way of
doing so, to make widely available all government
documents in Kurdish, Arabic, and English. Widely
available will mean posting documents on the
Internet and having copies available in every sub-
district. The documents to be disseminated will
include laws, draft laws under consideration by the
Parliament, draft laws under consideration by the
Council of Ministers, regulations, draft regulations,
the operating budget, the investment budget,
audits, and all other official documents. We will
also publish voting and attendance records of all
members of Parliament, and work to institute a
financial disclosure system for all public officials.
Creating high legal standards and ensuring
ethical behavior by the government. We
will propose legislation and conduct outreach
and collaboration with international experts to
ensure our anticorruption and government ethics
efforts are of the highest international standards.
We will provide integrity training to all our civil
servants. And so the burden does not rest only
on government officials, we will install integrity
pacts in key civil infrastructure projects and create
and implement a contractor ethics and integrity
program.
Ensuring rule of law. We will continue reforms
to ensure a professional and autonomous judicial
system. We will focus on creating continuing
education opportunities for incumbent judges,
reforming financing of the judicial system, investing
in new facilities, creating a system for online case
tracking, designing rules for assigning cases
to individual judges, and improving media and
public access to courtroom proceedings and court
decisions.
Improving the efficiency with which we deliver
our government services. We will start to conduct
evaluations of our ongoing programs and pilot
new programs to better understand whether they
will succeed. These evaluations should become
routine for all ministries, be based on the most
up-to-date methodologies, and be conducted
by the independent organizations to guarantee
impartiality. We will also ensure that the use of ICT
in government becomes widespread to enhance
efficiency.
Making sure citizens have a voice. Governments
around the world strive to improve their services.
We will investigate instituting a system by which
citizens can report their satisfaction and their
problems with government programs and
government officials and suggest ways to improve
government operations. To demonstrate our
transparency, we will publish these reports and
suggestions.
Simplifying government requirements. We will
review all of our licenses and regulations and start to
eliminate any that are unnecessary or burdensome.
Ministries will need to show why a license is needed.
Investigating the organization and operations of
our ministries. We will review the main purposes of
each ministry in light of this Regional Development
Vision and then analyze whether the ministry is
organized to achieve those purposes. We will also
review whether each ministry communicates with
and responds to the public the best way possible
and whether each ministry has sufficient funding to
carry out its delegated responsibilities. When we find
that ministry performance can be improved, we will
develop ministry reorganization plans.
Improving coordination within the government.
In order to be effective, our government must
improve the way its ministries work together to
achieve common goals. Part of this effort will
include the spread of ICT throughout government.
We provide more detail and concrete steps in the
Conclusion, where we outline the responsibilities
of the government in fulfilling this vision.
The Budget
We have ambitious goals, and we can achieve many
of them by improving our management systems and
revising our laws and regulations. But reaching
our goals will also take considerable expenditures
made wisely.
Vision
A transparent, efficient, and equitable public
finance system that fully pays for the government
investments and operations that are of highest
priority for the well-being of the people.
The Budget Today and in 2020
Fiscal management is a key challenge for our
government as it tries to balance resources
under difficult circumstances while meeting the
Regions highest priorities. Our budget has grown
dramatically, more than doubling since 2008,
although it fell in 2009 when oil prices fell
(Table 4.1). Until recently, we put much of this
increased government revenue into our investment
budget. The result has been new roads, schools,
health facilities, and other necessary infrastructure. To
aid our development, we intend to keep increasing our
investment budget and to spend the money efficiently.
Our vision for 2020 is that our revenue sources are
diverse and stable and that our spending is well
planned and matches our priorities. We face a number
of challenges on the way to achieve this vision. Our
government receives a substantial portion of its annual
budget from the federal government, supplemented
by limited taxes and fees collected locally. The federal
budget depends largely on national oil revenues that
fluctuate a great deal. This makes the budgeting
process at both the federal level and Regional level
unpredictable. Furthermore, the federal government
often does not approve its budget until after the start
of the fiscal year, and this delays our ability to fully plan
our public finances and receive our rightful portion of
the federal budget. Finally, with the expansion of our
government, our investment spending is at risk. Our
investment budgets starting 2009 have constituted
a lower share of the total budget than the investment
budget constituted in 2008.
Year Operating Investment Total Investment Share
IQD Billion %
2008 4,750 2,879 7,629 37.7
2009 6,554 2,303 8,857 26.0
2010 7,889 3,543 11,432 31.0
2011 10,099 3,852 13,951 27.6
2012 10,746 4,500 15,246 29.5
2013 11,608 5,334 16,942 31.5
Table 4.1 The KRG Budget
SOURCES: The Official Gazette of the Kurdistan Region, issued by the KRG Ministry of Justice; KRG Ministry of Planning.
NOTE: Figures for the operating budget include separate line items for Parliament and the Judicial Council.
No data for these two line items were available in 2009.
In 2009, we adopted an Action Plan for Regional
Public Financial Management. To support this,
we embarked on a Budget Execution Support
Project to strengthen our budget policy, planning,
and formulation; our execution and monitoring;
our reporting, oversight, and control systems; and
our management information systems and human
resources in the budget area. We will continue to
build on our Action Plan and the result of the Budget
Execution Support Project to ensure that we spend
our government budget wisely.
Policy Priorities
In order to increase the ability of the KRG to budget
properly, the government will execute the following
policy priorities through 2017:
Modernizing budget administration. We will
complete and work to implement all budget
support projects currently underway, and embark
on new ones to improve the current budget
administration. This includes, among other tasks,
harmonizing budgeting practices across the three
governorates, reducing cash-based transactions,
and adopting international standards for budget
reporting by all ministries.
Increasing budget transparency. We will adopt
international standards for budget reporting and
ensure timely public release of the draft budgets
that are sent to the Council of Ministers and the
Parliament, and then timely public release of the
approved budget. We will also publish a timely
annual accounting of the budget after we close
the books for the year. All these documents will be
posted online.
Moving budget decisions closer to the people.
Our governorates, districts, and sub-districts
all have institutions for making decisions about
what government investments and services
would be best for them. We will enact a legal
framework to specify revenue sources and
spending responsibilities among different levels
of government, and institute fiscal transfers from
the central KRG budget to district and sub-district
budgets to compensate for differences in fiscal
need and tax base.
Improving taxation. The KRG must diversify its
revenue sources to reduce its dependence on
transfers from Baghdad and revenues from oil. Our
government will explore new methods of personal
and business taxation in a way that will reduce
economic distortions, make sure mobile capital
does not flee the Region, minimize compliance cost
for taxpayers, and keep administrative costs low.
These taxes will empower our government to invest
more for the people while lowering our dependence
on the federal government.
Aligning the investment budget with our
priorities. We will ensure that spending under the
investment budget matches the priorities outlined
in this Regional Development Vision. Furthermore,
we will introduce cost-benefit analysis or other
investment appraisal methods to ensure we are
receiving value for money.
Stabilizing our budget. Finally, we will explore
the establishment of a Regional budgetary
stabilization fund to prepare for future downturns
in our revenues. By using this fund, if oil prices
collapse or if Baghdad is slow to send us our
share of the national budget, we can maintain rates
of investment and service expenditures that the
people deserve.
Reform of the Civil Service
Our government has many achievements since
liberation, but it is also too large and inefficient.
Changing this is a key element of our overall
development strategy.
Vision
A government that is the right size with the right
people to act as an enabler for the growth and
development of the Kurdistan Region.
The Civil Service Today and in 2020
Under difficult circumstances and great uncertainty,
we built a government where none had existed
before. We are now in our seventh cabinet and we
have ministries and departments that are concerned
with all sectors of society and the economy. With this
achievement, we now must move to the next phase
of improving our government. We must ensure that it
is the right size not too large or too small and that
we have the right people in the right positions.
Our government is too large. Some of our efforts
to reduce the size of government are part of our
program to rebalance the economy from the
government to the private sector, discussed earlier
in our vision for the Regions labor market. However,
there are additional steps we can take that are
internal to the government. First, we must evaluate
the level of salaries and benefits that our government
employees receive to make sure that they are not
overpaid in relation to the work that they do. Second,
we can institute a program to help our government
employees leave government comfortably so that
they can choose to embark on a new career in the
private sector. The key to this will be a voluntary
separation program, in which we will develop
rewards to people for leaving the government and let
people choose to claim those rewards. This will work
in coordination with development of the private sector
so that the possibility of private-sector employment
is available for people who leave government and
encourages them to do so.
For those who remain in government, we want to make
sure that we have high quality civil servants and that
we have the right people in the right jobs. We must
first define exactly what jobs we need and what the
responsibilities of each job are. Once we define the
jobs, we need a way of hiring the most qualified people
in an orderly, non-political, and transparent fashion.
We then need a way to evaluate job performance
and promote only the best employees. One way to
achieve all of these goals efficiently is to establish a
civil-service management agency that can create a
strategic human resource plan and manage hiring,
evaluation, and promotions. This will help us reach our
goal of a fully professional civil service by 2020.
Policy Priorities
Our government will have these policy priorities
through 2017 to professionalize the government and
guide it toward its correct size:
Managing the civil service to meet short-term
and long-term goals. We will develop a strategic
human resource plan, including creating job
descriptions, having rigorous staff evaluations, and
matching the size of the civil service to the tasks it
will accomplish. This will allow us to reduce hiring
now while still meeting our short-term needs, and it
will allow us to continue to attract young officials who
will be the government leaders who fulfill and build
on this Regional Development Vision. Our new plan
will also ensure opportunities for capacity building
of government officials.
Establishing a civil-service management
agency and system. Creating such an agency to
manage hiring and evaluation will help us ensure
that we hire the people with the right skills, that
we evaluate them fairly, and that we then promote
only the best. It will also take the lead in creating
written job descriptions of all occupations in the
government, a fundamental requirement for all
modern governments. These job descriptions will
enable us to create a new evaluation system and
complete fair evaluations by creating standards
against which we will measure job performance,
and they will let us establish career paths within the
government.
Adjusting compensation and benefits. We will
review the compensation and benefit package our
government employees receive with an eye toward
making the private sector more desirable. This will
include considering whether we are too generous,
now that we are developing a diverse economy
and the government no longer needs to be the
main employer.
Helping civil servants choose to leave
government and contribute to the private
sector. We will consider new programs to enable
civil service workers to voluntarily leave the
government with a safety net so that government
employment is reduced. Our process will be to run
pilot programs, evaluate them, and then institute
new programs government-wide.
The Way Forward
Our program for making government work for the
people includes a coordinated set of policies that
will cause the government to be an enabler for a
healthy, educated population served by high levels
of infrastructure with a variety of job opportunities.
An honest and efficient government will spend its
money more wisely, match spending to priorities,
and focus on those tasks that government does
best, making room for the growth of a vibrant private
sector. Better budget processes and decisions closer
to the people will ensure that the publics money is
spent on their highest needs, resulting in a healthier,
better-educated population. A smaller government
will have more money to spend on investments in
our Region, resulting in better infrastructure and a
cleaner environment. Creating an honest, effective,
fiscally responsible, and qualified government will
give the private sector and the people a true partner
in creating a successful Kurdistan Region.
Our work together will build on our
many achievements, and create
new achievements of ourselves, our
children, and our grandchildren.
Our Region has come far since our population fled
to the mountains after our uprising in 1991. But we
still have far to go. This Regional Development Vision
provides a framework within which the government
and the people can work together to set specific
priorities and reach our goals.
Monitoring the Progress
Toward Our Vision
Our development vision is a Region where all
the people enjoy the benefits of freedom, health,
welfare, and economic security and opportunity.
We will monitor our progress toward achieving this
vision (Table C.1). Our goal will be to ensure that our
policies and reforms are based on evidence.
Our statistical agency, the Kurdistan Region
Statistics Office, is improving rapidly and has
available to it a roadmap for becoming a first-class
statistical agency. It is both professional and serious.
Likewise, we have statistical capabilities in our
ministries, and have embarked on improving them as
well. But we do not yet have all the data we will need
to monitor our progress.
For example, in order to monitor clinical services
in the implementation of our healthcare policies,
we will need to create four main data systems:
(1) a management information system to monitor
health resources and services and present data
in tables and maps to be used by managers at
district, governorate and Regional levels; (2) a
system to monitor health care utilization; (3) routine
client satisfaction surveys to monitor the level of
satisfaction of people served by the health system
so we can improve the system; and (4) a system
for quality monitoring at hospitals and clinics so we
can monitor incidence and distribution of hospital-
acquired infections and medical errors, and other
quality statistics. Likewise, in the area of promoting
preventive services, we will need to institute a
public health surveillance system and a system
for monitoring, evaluating, and approving the use
of pharmaceuticals and their quality and safety,
and develop environmental quality and food safety
indicators. In the area of housing, we will need to
institute a regular census of housing to gain a full
understanding of the housing situation in our Region
Accordingly, we list the major monitoring indicators
we will need to collect in order to measure our
progress, knowing that we will not be able to
collect all of them immediately. In the interest of
transparency, we will publish all of these indicators
in a timely fashion. In some cases, the data will
be available. In other cases, we must create
the systems or the surveys to collect the data.
Furthermore, we will strive to develop qualitative,
efficiency, and effectiveness indicators.
Monitoring our progress is more than just collecting
and publishing data, however. It also involves
evaluating how well our policies and programs
are working, and changing our course as we gain
new information. Accordingly, one of our goals
as we fulfill this vision will be to develop a fuller
monitoring and evaluation framework to make sure
that the indicators we collect will be used to improve
our actions and reach our goals. Building up our
monitoring capabilities will also be a major policy
thrust through 2017.
CONCLUSION
Fulfilling the Vision
Table C.1 Monitoring Indicators
Chapter One: Putting People First
Health In Kurdistan
Introduce a Sound Health Care Financing System
Number of people covered and claims paid through the
new insurance system
Number of insurance companies established and
operating
Percent of payments made that are based on amount of
work performed and its quality
Hospital productivity as measured by hours open,
patients seen per hour, and cost for treatment of various
conditions
Improve Availability and Quality of Clinical Services
Data collected under the four main systems described
above will be benchmarked against representative
countries the Region should strive to be like in the short
run, such as Jordan and Turkey
Education in Kurdistan
Number of new schools completed each year
Percentage of teachers trained each year
Gross and net student enrollments in secondary
education
Completion rate in secondary education
Employment rate within one year of finishing a
TVET program
Percentage of university graduates who obtain private
sector employment
Foreign language and IT literacy among
graduating university students
Equality of Opportunity and Support
for the Disadvantaged
Killings, burnings, and beatings of our wives
and daughters
Number and percent of people below the poverty line
Gap between the basic cost of living and the amount
of state assistance needed to bring people to
this basic level
Number and activities of NGOs serving
disadvantaged groups
Annual child and youth well-being index based
on poverty, schooling, health, and other measures of
socio-economic conditions
The Labor Market in Kurdistan
Labor force participation rate
Unemployment and underemployment rates
Length of time a person remains unemployed
Gender differences in labor force participation,
unemployment, and underemployment
Number of private sector employees enrolled in training
courses each year
Number private sector workers versus civil
service workers
Average compensation to private sector workers versus
average compensation to government workers
Chapter Two: Building the Region:
Infrastructure
Overall Infrastructure Policy Priorities
Total user revenues for and total cost of running each
infrastructure system
Transportation for a Growing Economy
Tonnes of cargo trans-shipped through our
international airports
Number of airport passengers, flights, and airlines
Length of paved roads
Passenger vehicles traveling between major cities
Tonnes per hour of goods transported by road
Injury collisions
Water and Sanitation for a Growing Economy
Water
Total surface water stocks
Total groundwater stocks
Flows of water from inland water resources to users,
including households, businesses, and farms
Losses of water in distribution
Population using improved water sources
Assessments of the quality of water
Sewerage
Amount of waste discharged untreated directly into rivers
Population having access to modern sanitation facilities
Number and capacity of wastewater treatment plants
Proportion of rural residents with septic systems
Electricity to Power Our Region
Generation unit name, nameplate capacity, and actual
capacity
Daily kilowatt hours produced
Hours of power in each sub-district
Level of peak demand and percentage of peak
demand met
Communications for a Growing Economy
Number of mobile phone lines per 1,000 inhabitants
Number of Internet subscribers per 1,000 inhabitants
Availability of broadband services per 1,000 inhabitants
Percentage of localities with Internet access centers
Number of fixed telephone lines per 1,000 inhabitants
Number of post offices per 1,000 inhabitants
Volume of postal delivery per 1,000 inhabitants
Housing for a Growing Economy
Number of housing units
Incidence of home ownership
Average number of people residing in the same home
Number and value of housing loans to home buyers
Chapter Three: Creating and
Economically Prosperous Region
Number of farmers served by agricultural extension
Seasonal production and price data for staple crops such
as wheat and rice
Seasonal production and price data high-value crops
such as grapes and pomegranates
Number and value of new agro-industry projects
Amount of land under production
Average size of farms
Value and quantity of agricultural imports and exports
Amount of water used for irrigation
Enabling the Private Sector for Growth
Personal expenditures on goods and services
Exports and imports of goods and services
Consumer price index
Number of enterprises by economic activity
Number of persons employed by economic activity
Value of fixed investment
Time it takes to start and close a formal business
and the cost of doing so
Value of foreign direct investment
Crossing times for trucks at borders
Number and type of banks and branches
Type, value, and maturity of bank loans
Collateral used for bank loans
Value and type of insurance policies
Arrivals of visitors, and their average length of stay
Average daily visitor expenditure
Environmental Protection and the
Urban Environment
Water, soil, and air pollution
Frequency of environmental disasters
Private sector compliance with the
environmental regulations
Amount of garbage collected
Amount of designated parkland
Amount and type of street crime in cities
Chapter Four: Putting Government
to Work for the People
Effective and Honest Government
Percentage of all laws and regulations made available
publicly
Percentage of public satisfied with the operations
of their government
Annual reports on how citizen complaints are handled
Number of program evaluations and program pilots
Number of ministry organizational reviews conducted
The Budget
Annual publication of detailed budget, including revenues
and expenditures at all levels of government and for all
ministries and departments
All changes to the budget, at the time of change,
when revenues change unexpectedly
Annual audits of the budget
Reform of the Civil Service
Amount and growth of civil service wages and benefits
Number of civil servants by ministry and grade
Number of new civil servants hired by ministry and
grade, and their total wages and benefits
The Responsibilities of the
Government and of the People
Fulfilling this vision will not and cannot be the
responsibility only of the government. The people
must also participate, and therefore it is incumbent
on the government to reach out to them, protect
their human rights, and provide an environment
in which their aspirations can be realized. But
the government does have many responsibilities,
and these include developing specific priority
actions based on this Regional Development
Vision and then developing concrete, measurable
performance targets. As the ministries develop
their work plans to fulfill this vision, we will work with
them to develop the specific priority actions and
targets that will motivate their work.
The KRG will have the following responsibilities in
fulfilling this vision:
Improving our system of top-down
coordination. We will ensure that ministries
understand the KRG leaderships top priorities
and that ministry plans are coordinated so
that our actions can have the most impact.
Accordingly, we will further specify our top-
level priorities from among the policy priorities
designated in this Vision. We will also develop
an accountability system for ministries to provide
incentives for them to meet overall and ministry
goals.
Designing a system of bottom-up policy
development. We will embark on a system in
which each ministry develops detailed strategies
from the bottom-up based on this vision, the
ministrys own priorities from its specialized
knowledge, and consultations with civil society.
Upon the release of this vision, each ministry will
start to develop its own detailed plan in line with
the five-year policies priorities designated here.
As part of this plan, ministries will develop priority
actions and targets in their own sectors and
will be held accountable for carrying out those
actions and reaching those targets.
Creating a process of coordination among the
ministries. We will design a process in which
ministers, their advisors, their directors-general,
and any other officials they delegate can meet with
each other in small groups, specialized by policy
area, to coordinate policies and settle differences.
The policies developed by the ministries under this
vision will be based on their expert understanding
of the issues, their capabilities, and the desires
of the people, but different policies developed
by different ministries may conflict, and may not
match the guidance and the goals of top-level
decision makers. A process of coordination among
the ministries will be the primary mechanism for
connecting the top-down coordination and the
bottom-up policy development so that we can fulfill
the public interest and speed the implementation of
this Development Vision.
Consulting the people. Our efforts will include a
system for formally consulting with all stakeholders
in society business, non-governmental
organizations, men, women, and youth to ensure
that our governmental priorities are aligned with the
priorities of the population. Each ministry will also
design a system of formal consultation. As part of
this system, we will start a process whereby each
ministry and the government reports on stakeholder
input and how it was responded to.
Ensuring the sovereignty of the law. Progress
in nearly all sectors will require reforms of laws
and regulations. Social progress will require that
every person is equal under the law and that the
law applies equally to all people. We will reform our
laws and regulations and our judiciary system so
that all residents of the Kurdistan Region trust in
the fairness of all aspects of the law. In our reforms,
we will make sure our enforcement of the law is
effective and fair.
Collecting data, and monitoring and evaluating
our policies and programs. With the help of the
Kurdistan Region Statistics Office and the relevant
line ministries we will develop benchmarks and
collect data to monitor the progress outlined in the
Monitoring Indicators noted throughout this Vision.
We will develop a more complete monitoring and
evaluation framework to take the best advantage of
these indicators.
The people will have the following responsibilities in
fulfilling this vision:
Contributing to the new Kurdistan. As part
of the new Kurdistan Region Iraq, the people
must recognize that government is an enabler to
their success, and that the government will not
guarantee success such as by giving all graduates
employment. Instead, the government can and
will institute policies so that people will be able
to participate and fulfill their hopes in the private
economy.
Helping the government. The government
cannot know all the problems and opportunities in
Kurdistan. The people must keep the government
informed in the spirit of presenting ideas that are
good for our development, not for personal self-
interest.
The Kurdistan RegionIraq has a rich history, rich
agricultural land, and a wealth of natural resources.
But we are richest in the most important resource
people who are willing to work together for a
better Region. The people and the government
together can fulfill this vision. Our work together will
build on our many achievements, and create new
achievements of ourselves, our children, and our
grandchildren.
Getty Images
Front and back cover, mountain silhouette
Howard Shatz
Front cover, airport; page 28; page 38
iStockphoto
Front cover, flag; page viii; page 1, page 18;
inside back cover
jan Sefti, shared via Flickr; CC BY 2.0
Front cover, tree and chukar bird; page ii;
page iv; page vi; page 4
Seabamirum, shared via Flickr; CC BY 2.0
Page x
PHOTO CREDITS
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Ministry of Planning

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